Bitcoin is experiencing a moderate drop but analysts who predicted this expect BTC to see an uptrend
Over the past 24 hours, the Bitcoin price has experienced some pullback falling 3.5 percent, trading at $ 13,160 at the time of publication. After nearly two weeks of steady uptrend, BTC is now trading more than 4 percent below its 2020 peak.
Fears around COVID-19 play on BTC decline
Although there was some pressure on Bitcoin from sellers, the bulls supported the value of the cryptocurrency above $ 13,000. According to Santiment, the crypto analytics company, the drop in Bitcoin prices comes at a time when the number of mentions of COVID-19 and coronavirus is growing on crypto discourse platforms. The expert noted:
“Today, the value of Bitcoin has fallen slightly by-3.4%, and we see that the COVID-19 and coronavirus topics are growing again on the crypto discourse platforms. This is consistent with an increase in the number of cases in the US, and there is still an obvious inverse correlation with price.”
The US stock market has seen its worst day in months, as concerns about the recent increase in the number of infections in the United States have soared. Concerns about the possible impact on the global economy weighed on stocks. Over the past week, the number of infections in the United States has increased by 71832 people, as well as a sharp increase in the number of infections across Europe.
The Dow Jones industrial average fell 943.24 points, or 3.4 percent, on Wednesday, continuing to trade in negative territory for the fourth day in a row. The Nasdaq Composite fell 3.7%, and Wednesday was the worst day for the Dow and S&P 500 since June 11.
October was supposed to be a breakthrough month for BTC
According to the value circulation model of the Santiment Bitcoin network (NVT), a price breakout of the cue Ball should have occurred in October. Based on the greatly increased circulation of unique tokens interacting on the Bitcoin network, the October NVT signal showed that this was the first month of bullish divergence since may.
The network value-to-transaction ratio (NVT) is similar to the stock market price-to-earnings ratio, where it measures the overvalued or undervalued value of cryptocurrencies. NVT can be calculated by taking the market capitalization of the crypt, which is also the value of the network, and dividing it by the transaction volume in dollars in the network.
What’s next for BTC
Crypto analyst Willy Wu noted that organic valuation on NVT from major long-term investors has already reached a historic high. He suspects that Bitcoin will follow its upward trend:
“For now, we are waiting for BTC to post an all-time high, both on the monthly chart of $ 14,000 and on the previous peak of $20K. I will note that the organic valuation for NVT Price from major long-term investors is already at an all-time high. The cost will only increase.”
Bitcoin recently posted its highest growth in 2020, rising from less than $ 12,000 to more than $ 13,000 in less than two weeks. It managed to reach a new high in 2020, and break the 13k level for the first time since July 2019.
October could be the first month of bullish divergence due to PayPal and other organizations joining the crypto space. This was noticeable when Bitok and other cryptocurrencies were able to make a profit shortly after PayPal announced that It would allow its customers to use crypto assets.