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Tuesday, October 19, 2021

Bitcoin Velocity Implying BTC Might Move Downwards

The early hours of the 14th of July saw the price of Bitcoin taking yet another hit to come down to $31,550. Fortunately, the price did manage to recover itself somewhat- to end at a respectable $32,900 in the first session of the day. This swift drop where the cryptocurrency reaches the crucial resistance point of $30,000 has ruffled a few feathers as alarms have been raised amongst both bears and bulls.

Nonetheless, the range of $30,000- $32,000 continues to work as a buffer- a support level. In a recent update about the market, James Bennett, the CEO of ByteTree has painted quite a complicated picture of the cryptocurrency. 

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According to the update provided by Bennett, the price of Bitcoin did manage to stabilize at a point of $34,000 level due to major reductions as a result of miner selling. This has also led to quite an increase in accumulation- but the CEO has warned that the decreased activity in the network could very well be a hint that the cryptocurrency is still operating at a neutral zone. 

Bitcoin Transactions Decline

The recent report on the transactions of Bitcoin has displayed quite a sharp downward trajectory since April as it currently sits at 1.48 million transactions. This is quite a negation from its 9th January report of 2.57 million. Therefore, the total value provided to this BTC network has continuously dropped to $23.6 billion- which is the lowest level ever seen since December 2020. 

The velocity of Bitcoin has also hit quite a downturn of 195% on the 11th of July- which is a significant reduction from its previous high of 593% on the 23rd Mat. As Bennett states, the velocity is nothing but a non-price indicator that measures the very vibrancy of the network of BTC. 

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