Bitcoin About To Crash Again?
Bitcoin is recovering slowly from the dip to $6000.
It won't skyrocket immediately to 20.000 and higher. Market move in waves.
Are we still in an upward trend and was this a temporary correction?
Or was this THE crash and are we now in a recession?
Here is the case for the bears:
One of the charts used is the NVT ratio:
Bitcoin NVT ratio: the current price is still too high for the value being transmitted over the network
Bad signs:
- Volume is down
- Daily confirmed transactions are down
- Google trends on "Buy bitcoin" is down
- Alexa ranks for crypto websites are down
- Reddit volume is down on crypto boards
It is clear the hype phase is gone and we're now in still waters.
The price won't drop immediately. It can hover sideways for a long time if people think around $11.000 is a fair price for Bitcoin.
But we need buyers. Miners are selling their mined bitcoins every day, and someone needs to buy them.
I don't see Bitcoin rise to $20.000 and higher with so little interest around the world. $20.000 would make Bitcoin hightly overvalued at this point.