- Bitcoin plunges towards the $9k support after being stagnant at $9,300 for some days
- On-chain metrics shows BTC might plunge to $7,000
- Bitcoin miners are holding strong
Bitcoin News Today – Bitcoin (BTC) has been relatively stagnant around the $9,300 and $9,500 marks over the past couple of days. The new trend set in after the world’s largest digital currency by market cap was rejected at the $10,000 region again.
The digital currency market has been somewhat boring and volatility is gearing towards lows not seen since the beginning of this year. Nevertheless, evidence is showing that a breakout is on the way. The evidence is suggesting that the breakout will be in the downward direction.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin Might Plunge Towards the $7,000 Region
Over the past twenty-four hours, the price performance of Bitcoin (BTC) has been very poor. Bitcoin, which was trading around the $9,400 range yesterday, is now down to the $9k support range. At press time, Bitcoin is changing hands at $9,068 after a decrease of about 4 percent over the past day. While prices may seem to be holding up a bit well, the on-chain stats of Bitcoin are allegedly “dire.”
On June 14, Charlie Morris – the founder of blockchain data company BlockTree – released a report. He reported that a number of statistics for Bitcoin (BTC) are all trending lower, indicating a price plunge to the $7k region. In a tweet, he said:
“1-week network velocity down to 454%, 5-wk 556%. Tx value down, av tx size down, fees down, MRI shot to pieces. Why the lack of interest? Can’t see price holding up. Fair value <$7k.”
His bearish prediction of BTC plunging to the $7k region was derived from the Fair Value Indicator of ByteTree. According to the company, the Fair Value indicator is a network value multiple with respect to on-chain transaction volume. The bearish on-chain outlook can be supported by similar metrics from another blockchain analytics company – IntoTheBlock.
Bitcoin Miners Remain Strong
There seems to be one on-chain silver lining, and that is the mining scene. Coin Metrics – a blockchain data company – observed on June 14 that the hash rate of Bitcoin has recovered all the losses it suffered after the reduction of Bitcoin mining rewards on May 11. Coin Metrics said:
“The CMBI Bitcoin Hash Rate Index demonstrates that the hash rate has now largely recovered to its pre-halving levels.”
However, the strength among miners might not be enough to put an end to the confluence of bearish on-chain and technical outlook for the digital currency. One crypto analysts said:
“I’ve been seeing more and more comments saying BTC going down to support is unlikely because that’d be too big a drop. That’s not how BTC works. Retraces are short and vicious. Crashes even more so. 40% down is not unlikely, it’s happened before, it’ll happen again.”