Cryptocurrency Users Interested in Adopting Scaling Technology for their TransactionsMay 3, 2019
The story of how Bitcoin reeled down to $5000 is repeated news in the industry. The current price of Bitcoin is at $5490, and this is a significant climb up from its low at $5.370.
The decline of Bitcoin price was due to the negative influence of the Attorney General’s accusation about Bitfinex and Tether as defrauding investors. The market has now got rid of the negative influence of the news and is getting back to routine trending.
The current price action of Bitcoin according to a popular analyst, Luke Martin, reads thus: “$BTC slight move up since the resistance/support flip. Meh. It’s hard to be too excited about more upside until price can get above the most recent high at 5600. That’s when I would be far more bullish. Until then I’m a little closer to neutral.”
Several analysts are able to observe striking similarities between the current price action of cryptocurrencies and that of the previous years before bull runs.
Analysts express, there is a similarity between how the price bottomed down to $5000 to $3000 in the year 2017 and how it went back to $5000. However, for the same thing to happen in the current bear market, the time span taken was a bit longer. Considering, the current trend to continue, the price action for December 2019 is expected to be good the sooner the market gets over the Tether risk.
By observing the weekly trends, it will be possible to decipher if Bitcoin will continue to climb slightly higher and it will be clear on whether BTC will be able to break out of the $5000 region. Not all analysts are convinced about this outlook though.
Analysts like Tyler Jenks opine that Bitcoin has been a pattern and that this hyper wave will return to its trend line. By trend line, he means the price line that it was following before the 2017 bull market.
A Bitcoin whale recently moved $212 million for a transaction cost of $3.93. The Bitcoin address on which this transaction took place is known as (SegWit) Segregated Witness technology.
The SegWit stretches the ‘block size limit’ of Bitcoin from 1MB to 4MB. Therefore, miners will be able to fit in more transactions to the block. Thus, more numbers of blocks will be confirmed simultaneously, and ultimately the backlog of unconfirmed transactions will shrink as the users begin adopting the scaling tech.