It was stated last week that Bitcoin metrics turned to worst. We mentioned a report from the Blockchain analytical firm Coinmetrics and wrote that metrics for all leading blockchains are in a downward trend. Bitcoin’s active addresses, active one-year supply, the number of transactions, total transaction fees, total transaction value, and other metrics are declining as the use of BTC decreases at the same rate as the price.
However, it seems that there has been a reversal over the past week. Coinmetrics’ latest report revealed that the Bitcoin network’s measurements have once again risen.
For example, the seven-day average for active addresses is 5.6% based on the ratio reflected in the number of transfers. In addition, Bitcoin’s seven-day average hash rate has reached 76.7 hash per second and is on the rise.
Timothy Peterson, a leading crypto money fund manager, and investor have pointed out on Twitter the less active address, the less bitcoin’s fair value, over the past few weeks. Therefore, with the return of the number of active addresses, Bitcoin can once again rise. This can also result in an explosion.
Using @coinmetrics' "Realized Cap" metric and dividing by reported supply to get average cost basis for current holders.
BTC holders sitting pretty, XRP holders holding heavy bags pic.twitter.com/qactqgZYYD
— Rob "Crypto Bobby" Paone (@crypto_bobby) August 27, 2019
It is important to note that there are some metrics currently falling, namely the value of fees paid and funds transferred. However, the Bitcoin hash rate and the number of active users of the network are arguably even more important.
Technical analysis also supports the return to the bullish trend.
Murad Mahmudov of the leading crypto fund Adaptive Capital argues that by the end of 2020, Bitcoin can test up to $ 9,750 to flirt with the all-time high of $ 20,000.
When the trade wars exploded (China and the US, Japan and South Korea, etc.), Bitcoin rises, European and some Asian banks surrender, protests erupting in Hong Kong and France. While the world’s troubles are expected to become more uncomfortable, it is likely that this performance will continue in the same way.