Bitcoin has scared some investors, according to the fear and greed index (Fear and Greed). However, despite the chaotic situation in the market, on-chain figures show that the BTC network is stronger than ever.
Bitcoin may drop further
Over the past two weeks, Bitcoin has entered a downtrend and lost 18%. The leading cryptocurrency has plunged from a recent peak of $ 10,500 to a bottom of $ 8,555. Although quite a number of adjustments, the slaughter may not be over.
In fact, the support of the 200-day MA seems to be weakening. A break below this support barrier could increase the selling pressure on Bitcoin and push the price down to the 100-day MA.
The hurdle is currently at around $ 8,300 and the leading cryptocurrency will meet this level if the decline continues.
BTC / USD | Source: TradingView
Despite the high probability that the price will drop more sharply, the Bitcoin network continues to grow at an exponential rate. Every day, more addresses are created and the number of holders continues to increase according to data from IntoTheBlock.
The network grows with lightning speed
This statistical modeling and machine learning company estimates an average of 405,440 new addresses were created each day last week, an increase of 368,250 addresses.
Meanwhile, last week, the Bitcoin network had 231,000 addresses with an average of 37,190 daily addresses.
Daily active address | Source: IntoTheBlock
According to on-chain analyst Willy Woo, it is not easy to understand why the Bitcoin network has achieved such an exponential growth because human instinct is to observe “what is in a linear stance”. He asserted:
“If you observe acceptance curve, now available 1% of the world population holds this type of property. Tsnail growth 2 times per year and 4 times on the growth market. If these numbers are maintained, we will have half the world using cryptocurrencies within 7 next year”.
When will #Bitcoin reach mass adoption? @woonomic pic.twitter.com/CwSS5PVvZF
– Dennis Parker⚡️ (@Xentagz) February 24, 2020
“When will Bitcoin be accepted in mass?”
While the future of cryptocurrencies is unknown, the reality is that there have been more than 3.1 billion transactions on the blockchain in the past 10 years. report BlockNative's recent. More than 37% of these transactions took place in 2019.
This growth trend makes Woo believe that mass adoption is still on the way.
Total transactions on blockchain | Source: BlockNative
Time will tell whether Bitcoin will truly win and become part of the global financial system. Meanwhile, a wave of traditional investors like Shark Her's Robert Herjavec seems to be very optimistic about the future of pioneering cryptocurrencies.
In one interview Recently, Herjavec believes that precious metals like gold will not become an “economic indicator” in the future. However, Bitcoin may have a better chance of succeeding as an electronic payment method. Brother stated:
"I think the price of Bitcoin on a basis basis long term will double. User always Find to convenience and Bitcoin get that trait".
'Expectations price chaotic up and down!'
Trader Mr. Anderson, after observing the fear and greed index, points out that the market is currently experiencing a period of fear – at 39.
As the father of the index explained, extreme fear means buying opportunities because investors are very nervous at this time. Extreme greed is the impending adjustment of Bitcoin price.
At present, the index is not “extreme fear” but “reasonable fear”. So Mr. Anderson warned the price could start high volatility. However, the trader admitted that he expected it to turn into “extreme fear”.
#BTC Fear & Greed
I would have expected an “Extreme Fear” reading.
Fear is reasonable at this stage.$ BTC is testing is Daily 200s and created 21-week ema w / a monthly close this week as well.
Expect turbulence up and down! pic.twitter.com/dI6abCB6p6
– Mr. Anderson (@ TrueCrypto28) February 27, 2020
"BTC: Fear & Greed
I was expecting “Fear extreme degree ".
Reasonable fear at this stage.
BTC is kiểm TRA 200 daily and that is EMA 21 weeks also like this week's close.
Expectations price chaotic up and down! "
Data from the Index website shows The fear was stronger than before (from December 2019 to January 2020, when Index was only 21).
'Buy BTC below 10K dollars is a golden opportunity '
Bitcoin enthusiast and trader Carl Eric Martin said that now is the perfect time to accumulate Bitcoin, when the price is below $ 10,000. Calling it a golden opportunity, he believes buying BTC below $ 20,000 and even under $ 100,000 is still the right decision because the market is still in the early stages.
Accumulating #Bitcoin below $ 10,000 is a golden opportunity.
Actually, accumulating below $ 20,000 is also an opportunity.
In fact, we are so early that even accumulating below $ 100,000 is an opportunity.
– The Moon (@TheMoonCarl) February 27, 2020
"Accumulating Bitcoin under $ 10,000 is a golden opportunity.
In fact, accumulating less than $ 20,000 is also an opportunity.
Cours still so early that it even accumulated below $ 100,000 as well is an opportunity ".
BTC price today | Source: Coinmarketcap
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Thuy Trang
Bitcoin Magazine
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