Cryptocurrency

Bitcoin exchange rate prior to the reversal of the trend? – What us the BTC say fundamentals

The Bitcoin price has shown in the last days of his positive side. Within the last 5 days of Bitcoin, and almost 15% is increased. The Bitcoin Forks were able to grow, with Bitcoin SV on Pole Position, enormous. But other Altcoins on a current positive Momentum. But of course this is only a short-term view on the current Situation. How is Bitcoin in the medium to long term? What are the fundamentals speak for or against a other Bitcoin price increase?
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A single Bitcoin exchange rate indicator is insufficient

Again and again, Bitcoin on diving indicators, in a time of price increase or price decrease suggest. However, not all information is suitable to measure the current demand for Bitcoin right. In the CNBC show ‘Fast Money’ has been reported to the CEO of BKCM, a crypto-investment Fund, to the current situation of the Bitcoin exchange rate and an indicator referred to as the suggesting in the short term, to a price decline.
The CEO, Brian Kelly, said:

The address growth is the only fundamental factor that I consider, grew up (in December), while the price was declining. This is a big buy signal. The exact opposite is happening right now.

Brian refers to the Unique Bitcoin Addresses. This is the number of addresses that are used on a daily basis. This number is fluctuating and has declined in the last few months, after the short Bitcoin exchange rate Hype in June 2019, slightly.

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Sum of indicators show a positive picture

But that is not really meaningful for the actual demand for Bitcoin. Bitcoin is currently being is increasingly held in the next HODL shaft. Many people buy degrees BTC, and this on a Central Wallet of a Exchange are. This leads automatically to the currently less BTC addresses in use on the network daily. Nevertheless, the Bitcoin network is moving in the direction of 1 billion USD in transaction fees. This shows that the network is fulfilled to a very specific Use, and needed.
To be able to us a picture about how the Bitcoin exchange rate is currently from the fundamental side, in fact, we can not only consider the Unique BTC Addresses. Probably the most important indicators of the Hashrate, developer activity, and Development of the infrastructure around Bitcoin.
All three indicators show a positive development. The hash rate has recently reached a new all-time high, the developer activity is still eg, on a green branch (as well as the development in the case of Lightning), and the infrastructure will be expanded from day to day (. by Fidelity and Bakkt). It is, at least on the basis of these indicators, pretty good a long-term positive Momentum for the Bitcoin exchange rate.

Bitcoin price on the rise

The network effect of BTC cannot be stopped. The big players are not interested in most of the Altcoins, because these are depend to a large extent by the Performance of BTC, and in most cases managed on a centralized basis. Cryptocurrencies are still young and do not enjoy the trust of society. All of this takes time. Among other things, Bitcoin is in the very front, it has the longest Track Record, and thus enjoys the greatest confidence. Apart from that, is dominated by Bitcoin currently, the market with about 70%.
Bitcoin has established itself as the digital Gold yet. Especially due to the high volatility. But the road is paved. As soon as the market becomes larger, which will decrease the volatility in the Bitcoin rate to be somewhat more stable. This would also give risk-averse investors more confidence.
In addition, the global economic and political tensions continue to rise and investors into “safer” Assets Hiking. Bitcoin could benefit from this development also. In addition, the next Halving is in front of the door. Whether and how the price up to, during, and after the Halving will develop, is still in the stars. However, it will not be the last Halving and the inflation rate, thus, every 4 years (every 210,000 blocks) is halved. This will in the long term lead to a supply shock and the price in the amount, at least in theory.

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How do you see the medium – to langfrsitige Bitcoin price development? What are the fundamentals telling us?
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About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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