Bitcoin crashed yesterday at a tired low of $35,000 before turning stable and sideways. It’s a worrying time for bitcoin HODLers, but 2022 has been a turbulent year for them. Starting with tight fiscal policies, and then due to geopolitical adversity, the concerns are clear. But is there any hopeful news around the block?
A crypto-market analyst recently took to Twitter to call it “Plan C”. Posted Bitcoin signals on the feed. A caption was added to the post, “The bitcoin network has never been stronger.” This should come as a strong signal to the bitcoin community who are still reeling from yesterday’s crash.
let’s go to the chart
The tweet suggested four strong indicators that point to a strong foundation for the Bitcoin network.
According to Entity-Adjusted Realized Cap, Bitcoin is still at a high point in its history. In fact, the actual limit here is $467 billion which is at an all-time high. Macro-economic and geopolitical turbulence has halted the price rise, representing a major coup for the bitcoin community.
The second metric used here is “number of addresses with non-zero balances”. This is another important metric that reflects bitcoin volume and market sentiment here. This metric is also at its all-time high. This means that investors are filling new wallets with BTC and further increasing the demand in the market.
The third metric called “Minor Difficulty” talks about network security. This is another important metric that is at its all-time high. As the difficulty of the miner increases, more computing power is required to mine the same amount of blocks. This makes the network more secure in terms of attacks that make the bitcoin network secure.
The final metric called “cumulative settlement value” makes bitcoin the most efficient value settlement network. The current value is $28 trillion in a change-adjusted volume to get the most accurate on-chain volume.
These metrics are highly helpful for the bitcoin network, but whether they have any effect on price action remains to be seen.
wait… wait… there is more
Despite bullish signals from the chart above, the pseudo-anonymous “CryptoWhale” Posted One of the tweets signals a bearish period for Bitcoin. According to the tweet,
“Bitcoin influx on exchanges is over 438% this week. Whales and fish are ready to dump their bags. Big crash is coming, we haven’t seen anything yet.”
As we know, this signaled a major apprehension in the market for any currency. This represents a fear among both “whales and fishes” who are apprehensive of current market conditions and want to dump their assets.