Bitcoin transactions nosedive by 30%: BTC/USD sideways trading could continue

Data from CoinMetrics.io shows that there has been a big drop in the number of transactions on the Bitcoin network. The decline is coincidentally related to VeriBlock’s testnet stage. Besides, past reports have indicated that the startup is responsible for a sizeable amount of transaction on Bitcoin blockchain.

According to Ethereum World News, VeriBlock contributed between 25% - 45% to the total amount of Bitcoin transactions during the active testnet phase. However, the testing phase was completed on March 4 while the daily Bitcoin transaction has plunged by 21% raising a lot of questions.

“The recent collapse in BTC transaction count seems to correlate with the end of the Veriblock testnet (on March 4th) which was accounting for 20-30% of BTC transactions.”

Bitcoin price overview

Bitcoin is trading sideways below the critical $3,900. BTC has been stuck between $3,700 - $3,900 since February 24. Besides, the trendline support on the 4-hour chart is likely to continue providing the much-needed support because BTC/USD has not been able to sustain growth above $3,900. There is a bullish momentum building towards $3,900 at the time of writing supported by the RSI which is heading north. However, it is very unlikely that BTC/USD will sustain further growth towards $4,000.

BTC/USD 4-hour chart