Bitcoin price analysis – experts call the bottom, the market does not believe

• BTC/USD retested the lowest level of 2019 despite growing transactions volume.

• A sustainable move above $3,600 is needed.

Bitcoin is hovering marginally above $3,500 at the time of writing. The digital coin No.1 has lost nearly 4% since this time on Sunday, resuming the decline that started on the second week of January. The market seems to see the glass half-empty, paying attention only to negative news.

Meanwhile, the researchers note that Bitcoin's average daily transactions volume returned to the levels registered in October 2017 (a short reminder: that was the period of a strong rally on the cryptocurrency market).

"Bitcoin daily on-chain transactions grew 63% in the last ten months. Volumes are now the same as we had during the 2017 bull run, a Twitter user ArminVanBitcoin notes.

While the share of SegWit transactions has not changed in recent six months, LighteningNetwork activity has been gathering pace.

This makes the experts believe that the market has bottomed out and the bull run is about to start in the nearest future.

Bitcoin’s technical picture

Looking technically, BTC/USD retested the lowest level of 2019 at $3,480 before the recovery pushed it back above $3,500. It is worth noting, that the upside momentum has faded away, which means that the sell-off may be resumed later during the day. If the above said $3,480 is broken, the price might slide towards $3,400, which is guarded by 23.6% Fibo retracement level, monthly.

On the upside a sustainable move above $3,600 is needed to mitigate the immediate bearish pressure.

 

Tanya Abrosimova

FXStreet

Alan Zibluk Markethive Founding Member