Barring uncertainty, there is no clear indication for the price of bitcoin. Investors are perplexed as the first cryptocurrency by market cap follows price action like a crab. while writing, BTC is trading at $35,935 with sideways movement across the board.
The sharpest experts believe that BTC may be making a Bump and Run Reversal (BRR). BTC price in 2018 and 2019 Formed this chart structure after major corrections and managed to reclaim lost territory.
Comparison of Anonymous Analyst “Stillman” btc price The 2018 3-day chart versus its current 10-hour chart and found parallels that point to a bump and run reversal bottom.
— stillman (@stillman4n) June 5, 2021
Anonymous trader Polar Hunt agreed with the analyst’s conclusion. The trader believes that the “mega drop” in the price of BTC is causing apathy among investors. This creates a bump and run reversal.
We have played this game before. #B T c
Mega drops like we had now and in 2018, cause nostalgia. pic.twitter.com/zRRrZDJbcA
— polar hunt (@polar_hunt) 4 June 2021
As both charts show, this chart structure consists of 4 phases: the lead-in phase, which could have been built in previous months. Later, the price post-collision phase crashes and goes into accumulation.
This phase could extend for months as the price of BTC reaches higher lows in a narrow range and slowly retraces its previous highs. During this phase, the price forms a bowl-like structure as it climbs back to the levels seen in the earlier phase.
When the price begins to leave the bowl range, the chart enters a throwback at the trendline before climbing towards new highs, as seen below.
The structure is still being built and should be validated, but if it This suggests a long season of bad news for the bears.
On-chain bitcoin activity takes a hit
For BRR to consolidate, the price of BTC needs to increase. However, on-chain activity shows that demand for the first cryptocurrency by market cap has fallen.
Data from Glassnode indicates that bitcoin network activity is on a downward trend. Before the crash, bitcoin had about 1.15 million active addresses per day. This figure coincides with the 2017 peak of the BTC price, which saw a 18% drop during last week’s selloff.
Now, the daily active addresses are around 0.94 million. The analyst said:
This decline is almost half the decrease seen in 2017, indicating that activity has slowed, with more demand present (or perhaps going forward…)
The number of entities such as exchanges and miners alike pulled back and stood at 250,000 after falling from 375,000.
It should come as no surprise that the transfer volume of USD denominations settled by Bitcoin saw a 65% drop. Checkmate concluded that change-adjusted transfer volume fell from $43 billion to $15 billion per day. analyst couple:
(…) The 2017 aftershock is the only event of comparable scale where on-chain settlement volumes declined by 80% over a period of approximately 3 months.