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Although yesterday there was some stability, the decline would continue. First we expect the BTC / USD to ideally return to $ 5,000- $ 5,500 before the bear trend reverts. As we have seen, price declines are affecting chip-set producers, investors and encryption processors as enthusiasts refrain from spending BTC.
Latest Bitcoin news
That the market is collapsing is true. But while the bear plunger threatens to push prices to new lows, the side effect has been disastrous not only for ordinary hodlers, but for companies that help boost network infrastructure by favoring l & # 39; adoption. The recent gains of chip-set producers like Nvidia suggest caution while miners turn off their plants. At the same time, BitPay payment encryption processors are witnessing a drastic halt in cryptographic payments.
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According to an in-depth analysis of the blockchain analysis company Chainanalysis, transaction volumes declined from $ 427 million in December 2017 to $ 96 million at the end of the third quarter. This is a sharp drop of 80 per cent and seems to follow the general trend of the market, also falling 80 per cent compared to the peaks of 2017. After reviewing 17 processors of payment, including BitPay and Coinpayment, the research company noted that there is a slow but steady decline in the encrypted transactions in and out.
Although the specific data that tracks the performance of Bitcoin transactions is fragmented, it is likely that the path is most likely the same. For example, at Coinpayment, transactions have halved between January and October.
Read also: "Crypto King": Bear Market Aside, Bitcoin (BTC) still has an intrinsic value
However, as the crisis continues, there has been a marked increase in the number of transactions related to the Lightning network. Currently, Bitcoin LN has a total capacity of 432.71 BTC powered by 4,123 complete nodes, an increase of eight percent with 12,000 live channels.
Several encrypted analysts and commentators such as JBS Teves, a UBS strategist in London, believe that for the widespread adoption of BTC a reliable means of address exchange and implementation of scalability solutions should be the top priority. This is why the success of LN as a scalability solution faced by Blockstream is important.
BTC / USD price analysis
Weekly chart
Despite its deep liquidity, BTC / USD is one of the worst results of last week. It is down 30 percent and, while the slide continues, the Bitcoin bulls go out.
Put simply, the arrangement of candles combined with fundamental factors – the decline in adoption levels will most likely attract some liquidity from the market and this could have negative effects on the spread which in turn affect the entry positions or of exit by discouraging the capital injection.
But as it is, BTC / USD is trading inside a bear breakout model and with a full bar of candle press below $ 5.800, sellers are in charge. Although prices are currently trading below $ 4,500, which means our first targets have been hit, we recommend not to short-circuit and instead wait for the pullbacks in line with our latest BTC / USD business plans.
Daily chart
Even when bears rage, there is relief for coin holders in lesser times. For one, there is a slowdown and yesterday closed by November 20th but that does not mean buyers are in charge. Instead, considering the candle's general alignment and yesterday's doji bar, selling in place is a bit risky, that's why choosing sell signals in shorter periods of time preferably at $ 5,000- $ 5,500 it's the ideal.
Like yesterday, the appropriate arrests will be at the immediate resistance $ 5,800- $ 6,000. From then on, declines could push BTC prices to $ 3,000 or less.
Conversely, earnings above $ 6,000 cancel this bear projection and as long as there is a high trading volume accompanying this resuscitation, then the odds that BTC will expand towards $ 8,500 by the first quarter of 2019 .
All graphics courtesy of Trading View
Disclaimer: The opinions and opinions expressed are those of the author and are not investment advice. Trading any form involves risks, as well as your due diligence before making a commercial decision.
