The recent events connected with the rapid spread of the COVID-10 virus (known as the coronavirus) were also felt in the cryptonews and are affecting many cryptocurrencies. The markets reaction has been strong and stocks along with cryptocurrencies managed to drop their values. However, new on-chain data for BTC suggests that despite the bleeding, the current price range is a buy for traders investing in the dominant coin.
There is a simple fact that Bitcoin (BTC) was born from a financial crisis but has yet to experience a lot. This also raises the fear that the asset might perform poorly as the traditional markets across the globe crumble.
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These fears are weighing in on investor sentiment and with the May 2020 halving event approaching soon, people are wondering if the long-expected bull market (which may be a byproduct of the Bitcoin halving) will negatively impact the downturn in traditional markets.
Bullish investors that rely on traditional technical analysis to assess the Bitcoin price action will also find the asset’s current performance less than satisfactory. The digital asset’s constant struggle to reach $10,000 is leading many to question whether or not the coin will meet the high expectations from investors.
The on-chain data for BTC, however, comes from a thorough analysis from one analytics firm who examined it in detail. According to Glassnode and its co-founder Rafael Schultze-Kraft:
“Bitcoin’s UTXO–based system allows for analyses of on-chain data based on the ‘age’ of Bitcoins in the network, i.e. the categorization of Bitcoins depending on the last time they moved.”
He also said that the on-chain data for BTC allows one to categorize market participants into “meaningful actor groups” and:
“This allows us to obtain a refined understanding of on-chain activity that can be associated to investors that are characterized by different hodling behaviors. In particular, our approach is to break up on-chain activity according to two major industry stakeholders.”
In order to gain a better understanding on how the on-chain data affects the Bitcoin price news, we recommend you to follow our daily news and see how will BTC respond to this major announcement. Currently, the coin is in the red and lost over $800 in two days.
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