Bitcoin (BTC) started to rise slightly yesterday, May 25, 2020, a resumption of market control by bulls for a day, in order to limit the breakage after this fall following rumors of a Satoshi Nakamoto moving its BTC. After yesterday’s acceptable green candlestick, we’re headed for a small daily red candlestick today, May 26, 2020. Bitcoin is trading at $ 8,773 at the time of writing. .
Reasons to rejoice
The founder of Quantum Economics, Mati Greenspan, tweeted today, claiming to be bullish, with a Bitcoin which is attacking the resistance of 9,000 USD, while remaining in a bullish channel.
On the other hand, the data from Glassnode show a significant 115.8% increase in transactions BTC daily, during the last 24 hours.
Does an increase in transaction volumes mean a BTC bullish? Not necessarily ! However, despite this increase in transactions, the market price Bitcoin has fluctuated little; the dynamism of the network, can therefore contribute to a BTC bullish over a longer period.
Reasons to worry
Data from Glassnode also show, a 13 point drop in the GNI index this week – GNI index gives an idea of the overall state of the blockchain BTC.
Since Bitcoin will not tackle USD 10,000 anytime soon in the next few days, if blockchain activity BTC were to decline and the overall health of the market did not improve, this drop in GNI could be an indication of a return to bear territory for the BTC.
So now is the time to wait: Bitcoin is in an area where it could very well rise again, or fall further to lower levels. We are still in this period where halving has for the moment a counter-intuitive effect. The mechanical decrease in the rarity of Bitcoin does not explode its price in the short term and, puts miners in trouble – which is not without consequences on the markets. But hey, the BTC started well from $ 3,700 to attack $ 10,000: so why worry if you think long term?
Litecoin, welcome in the Silver Age