A new experimental metric is featured in the latest cryptocurrency news, indicating that the Bitcoin 2019 price run was triggered by real and confirmed transaction growth. The quality of activity, as the metric shows, allowed Bitcoin to clock a 28-week high last Saturday, signaling that the cryptocurrency’s latest price rally may be more fundamentally driven compared to what many expect.
Named the Transaction Amount to Active Addresses Ratio (TAAR), the metric was first proposed by the Pugilist Ventures Founder Chris Brookins, who divided the 24-hour adjusted transaction volume (USD) of Bitcoin with the number of its active addresses, identifying how much each of the active addresses spends in transactions per day, on average. Brookins found that the Bitcoin 2019 price run was signaled from this ratio.
For those of you who don’t know or are unfamiliar with the TAAR ratio which is a viral topic on many best cryptocurrency news sites…
If the TAAR is high, it means that each user (active address) is transacting in high notional values. In other words, TAAR was high over the past couple of weeks during the Bitcoin 2019 price run which showed that the network “quantity” (how much is being spent i.e. transaction volume) was high per the “quality” (how many users are spending the funds from active addresses).
So, the TAAR’s quantity and quality matched and were both high. This is how a positive reaction in Bitcoin’s market occurred. Since April of 2013, the oldest data point (as we can see from Coinmetrics) has been this one – making it clear that the Bitcoin 2019 price run entered a sustainable trend when it was accompanied by a TAAR trend in the same direction.
As the chart associated with TAAR indicate, the Bitcoin 2019 price run was impressive. When seeing the network activity, Bitcoin managed to escape its bear market in 2015 with the same technical traction.
However, weeks ago, this added fundamental validation to the Bitcoin price growth at the time, which is often a victim to pure speculation. And what’s most interesting is the fact that the Bitcoin TAAR performance is once again rising, indicating that the bear market may be over soon and that corrections in price should be expected – both in the Bitcoin as well as the coming altcoin news.
Bitcoin Is Vulnerable, Mayor Buying Zone Is Below $6,800: Analyst
“$BTC still vulnerable. Longs once above $7900-$8000 (higher) or on panic flushes (lower). Next support: 7600-7435, 7200, 6800, 6400. 6800 is major, determined by all three price action, moving averages (50DMA) and fibs (Dec lows to 2019 highs). 6400 is the bull market level.”https://twitter.com/krugermacro/status/1136286134403764225 A new retracement to the 50 day moving average is pretty much exactly at $6,800. Since Bitcoin is vulnerable, this will likely serve as a buying zone, Kruger added:
“I see the 6800-6200 area as a gigantic buying area. I do not know if price will drop there. I know what I’ll do if price drops there.”Another fellow trader named Josh Rager commented that Bitcoin is condensing regarding its price range - which may lead to another volatile move very soon. The crypto trader 'Moon Overlord' also stands on the side saying that Bitcoin is vulnerable. He echoed his sentiment adding a chart which depicts the previous big corrections, stating:
“If you think #bitcoin is in a bull market and are looking to buy the dip, look to the previous run for templates. The largest dip was barely -40%, most are in the -30%’s. A -30/-40 % dip from here coincidentally lines up with the strongest support in the high 5000’s low 6000’s.”https://twitter.com/MoonOverlord/status/1136250450615947265 It seems like Bitcoin is also gaining a negative traction in the latest altcoin news. As we can see, many altcoins are in the red and following the moves of BTC.
Bitcoin Goes Below $8,000 Overnight: What Is The Reason?
“About 20-30 mins before the dump, a whale moved 25k BTC (worth $215M) to Coinbase. About an hour after the dump, a whale moved 14k BTC (worth $112M) from Coinbase to another wallet.”In the coming altcoin news, we can see that the situation is largely affected by the dominant cryptocurrency. As Bitcoin visits lower levels, altcoins are following too. The big sell order may have triggered even altcoin sales - and the market cap of $253 billion is solid proof for that. What's fascinating is the fact that the only gainer in the altcoin news is Bitcoin SV (BSV) which managed to sustain the momentum and stay at $222 which is its price at press time. Besides it, the entire top 40 list is in a sea of red. The cryptocurrency analyst Josh Rager follows as Bitcoin goes to decline even more. This morning, he wrote:
"Bitcoin continues to push down quite aggressively and would like to see a move above $7824 and hold Eyeing that previous CME futures gap that wasn’t explored at $7175 If Bulls don’t step in, I believe the price is heading that way."On the question if Bitcoin will recover, he said that this may be a short term relief that can last hours or days before another push to retest the Bitcoin price action occurs. Similarly, other traders have emphasized that $8,200 is a crucial level that Bitcoin must sustain right now.
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