- Bitcoin (BTC) up 8.2 percent in last week
- More Americans are owners of Bitcoin
A Blockchain Capital survey reveals that Bitcoin awareness, familiarity, and perception has improved, explaining the high Bitcoin (BTC) ownership in the US. At the time of press, Bitcoin (BTC) prices are stable, above $5,500 as buyers aim at $6,000.
Bitcoin Price Analysis
Blockchain brought decentralization with the community building applications on public ledger securing the network by running full nodes. Bitcoin and Ethereum are the two topmost decentralized, proof-of-work networks dependent on the community for security and transaction confirmation. Even so, Bitcoin’s parameters are not immune to fluctuations.
Of the many like centralization and distribution levels, the hash rate can divulge more than just security. At a glance, hash-rate measures sentiment. At the moment, rising prices are drawing efficient miners meaning the view is positive. Because of shifting sentiment, many investors are flocking back to BTC increasing its dominance levels. However, as prices retest critical resistance levels, Bitcoin’s hash rate plunged 22 percent in less than a week to around 42 EH/s.
If anything, this is bearish and could be a leading indicator that prices may drop in days ahead. That is despite what a recent poll by Blockchain Capital revealing that 11 percent Americans are Bitcoin holders. The report further reveals that “despite the bear market, the data shows that Bitcoin awareness, familiarity, perception, conviction, propensity to purchase and ownership all increased/improved significantly.” Furthermore, the shift in trend “highlights that Bitcoin is a demographic mega-trend led by younger age groups.”
At the time of press, Bitcoin (BTC) is up 8.2 percent in the last week. Despite temporary liquidation, we expect prices to rally in coming weeks thanks to improving fundamentals and general expectations in the market after a year of winter.
All the same, it appears that before buyers resume and build on the upswings of early April, participants must first reject lower lows. From candlestick arrangement, there seems to be a correction following the over-valuation of May-4-5 when two bars did close above the upper BB. In that case, it is likely that Bitcoin (BTC) will retest $5,400 before the resumption of the original trend.
In light of the above, our reference bar is May-3 bull bar—19k versus 10k. It is wide-ranging, thrusting prices towards $6,000 and above Apr-24 highs. For bears to be in control, then any drop below $5,400 must be with high participation levels above 19k.
Chart courtesy of Trading View