Bitcoin (BTC) price fell to $ 3,600 in a short period of time on March 12, closing the day at $ 4,970. The biggest cryptocurrency came out of the big downtrend on March 13 and closed that day at $ 5.563 with an impressive rise of over 10 percent.
Whether in the traditional markets or the cryptocurrency market, fear and panic dominate the markets right now. This is suppressing prices. On the other hand, looking at the four basic price metrics to get an idea of the future of the biggest asset of the crypto market, it is seen that the price of Bitcoin moves on solid foundations.
1. Stock Flow Model Remained Unchanged
Looking at the stock flow model, which is a Bitcoin price prediction model based on current circulation supply (stock) and new production output (flow), it is seen that the collapse on March 12 pushed the price below the predicted line but remained within the expected thresholds.
Bitcoin price did not fall below the 365-month price model for the first time, similar decreases were seen before. For this reason, it would not be wrong to say that the price moves faithfully to the model.
The creator of the model, PlanB, said in a tweet on March 13 that Bitcoin was released nicely around the model value. The estimated price has not changed, considering the next half-time event is approaching, according to the analyst. The current 365-day average model predicts a price of $ 8,426 at half-time (May 9, 2020) for the price of Bitcoin.
2. Bitcoin NVT Signal
While the price of Bitcoin was around $ 5,400 on Sunday, the price read on the NTV signal was $ 5,596. This means that after the fall on March 12, it was in the buying zone. Currently, the value of the NTV signal indicates the 49.5 and 45 level oversold zone.
For investors who are considering buying short-term Bitcoin, the model shows that the actual price and the 200-week average are basically a profit opportunity. Considering that the average price of 200 days is $ 8,587, it can be said that Bitcoin will increase in the long term and the half-time activity in May will contribute to this upward narrative.
3. What is Hashrate?
Expressing the total computing power of the devices used to produce Bitcoin, the hashrate has been falling since the beginning of March after reaching historical levels. Hashrate has been rising since the 11th of March, after the 50 percent drop recorded on 12th of March.
On March 13, the hashrate was close to 110.38 quintillion hash per second. The same levels were seen in late February, but the corrections in February have not been able to prevent the long-term upward trend, with historical hashrate values seen since the New Year.
4. Mining Difficulty Increases
The upward trend in the mining challenge continues, which refers to the effort that miners must make to verify transactions in Bitcoin’s blockchain. Despite the negative market conditions, mining difficulty increased on 8 March.
Number of Transactions Increased on 12 March
The number of transactions in the Bitcoin network increases when major changes occur in the market, which is seen to have increased in the middle of the turmoil on March 12. On March 13, there was an increase in the amount of Bitcoin sent in US Dollars, and the number of daily transactions has been steadily since the beginning of the year, dropping to around 277 thousand transactions at the end of February.
Although the recent market crash has shaken investors’ trust in Bitcoin, Bitcoin’s core network metrics have not stabilized despite uncertainty and fear. Looking at all these metrics, it can be inferred that some strong hands are afraid of looking for a low price purchase opportunity to benefit more from the positive situation in the long run.
On the other hand, the fear caused by the new coronavirus (COVID-19) epidemic around the world has caused a short-term liquidity problem in the market. But in addition to the analysis of the basics of the Bitcoin network, we can witness that Bitcoin has manifested itself more strongly in the current medium-term crisis, even though the digital asset’s safe haven relationship with gold is currently in a downward trend.
Related posts:
GitHub Libra Code draws criticism from users 
Tipping on Reddit and Vimeo in BAT introduced by Brave 
Newcomers to the crypto market have to pay attention to scams and pump and dumps 
Hardly any growth in downloaded crypto apps, despite tripling price bitcoin 
Bloomberg accepts Bitcoin – says cryptomonads are here to stay 
The Central Bank can release their cryptocurrencies earlier than expected
