Tanya Abrosimova
Independent Analyst
- Bitcoin transactions are growing in number, the price isn't.
- Critical support is created by $6,200.
Looks like BTC/USD settled under $6,300 for now as bears have had an upper hand across the overwhelming majority of cryptocurrencies. The largest digital coin attempted a recovery at the beginning of the week, but $6,400 resistance proved to be too strong to be taken out easily.
Meanwhile, the sluggish price movements are accompanied by a notable growth of daily transactions. On November 12, the daily number of confirmed transactions within Bitcoin mainnet surpassed 300,000 for the first time since the end of January. It is worth noting that Bitcoin touched the all-time high in December 2017, when the daily transactions exceeded 490,000. The decrease lasted until April 2018 and bottomed out at 135,129. Meanwhile, the hash rate has been growing steadily since December and spend the recent two months in a range 45 TH/s - 60 TH/s.
The price is moving in a range limited by $6,300 and $6,500, while, according to Coinmetrics.io research only one out of four Bitcoins has ever moved between addresses and was kept over six months.
Bitcoin's technical picture
From the longer-term perspective, BTC/USD is capped by $6,400 handle, which is closely followed by DMA50 at $6,427 and DMA100 at $6,500. This level coincides with the upper border of the recent range, which needs to be cleared before the coin can proceed towards $6,780-$6.800 area that stopped the recovery at the end of September.
On the downside, the critical support lies with $6,200. Once below, the sell-off may continue towards the recent low $6,060.
BTC/USD, the daily chart
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