Bitcoin has recently experienced an incredible fundamental growth: The network activity is increased throughout the year, while the crypto-currency number 1 in the face of immense global economic turbulence relatively strong price action.
Another fundamental factor that has been shown during the entire year 2019, significant signs of growth, the number of active BTC addresses. The system has reached recently a new 9-month highs.
In spite of this fundamental growth, the analysts are still cautious in terms of bitcoin price development, where a prominent Trader commented that the Benchmark crypto-currency could become “Toast”, because it deals with the main Resistors, and furthermore, the leadership of the stock market follows.
Bitcoin consolidates, Analyst indicates technical weakness
At the time of writing, Bitcoin is trading at its current price of 7.230 $ slightly down, which corresponds approximately to the level at which it was traded after his rapid rise above its previous resistance at 7,200 $.
The quiet price movement of the entire weekend came for investors not surprisingly, since BTC due to the closure of the traditional markets in the week in a sideways trend has been established.
Analysts are of the view that the close correlation of Bitcoin to the traditional markets remains a huge weak point for crypto-currency – one that is intensified, if there are signs of technical weakness in a popular Analyst on Twitter shows how Cantering Clark writes.
“I think BTC is toasted at the Moment, but it’s the weekend. It should be interesting to see how the [open S&P 500 future market] and how [Bitcoin] reacts to it. Failed auction, and the previous HTF-series, which now acts as resistance Hold.“
Active addresses are now on a 9-month High at a time of increasing fundamental strength
The basic strength of Bitcoin is in stark contrast to its technical weakness.
A factor that offers a glimpse of this strength, is achieved, the increase in weekly active addresses – today’s new 9-month highs.
Josh Olszewicz is another well-respected crypto-currency analyst writes in a Tweet about this event and refers to a chart with data of Coin Metrics.
“BTC stands weekly active addresses on a 9-month maximum.”
The upward trend is to be seen on the above graph, illustrates a Trend of increasing market rates of participation among investors and traders.
This phenomenon could be partly due to the fact that investors see volatility before the Bitcoins upcoming halving of the block rewards could be created. Because it is so far fallen historically always closely linked with bitcoin’s large price movements in both directions.