Last week, the Bitcoin Blockspace saw a record large infusion of demand as speculators rushed to issue BRC-20 tokens using text inscriptions.
Bitcoin faced a sluggish momentum after turning down below $27K at the beginning of this week. This slowdown could be possible due to the network congestion the BRC-20 network is facing at the moment as the fight for the Blockspace has become tough due to Bitcoin ordinals and text inscriptions.
According to Glassnode's weekly on-chain report, this week saw a surge in demand for Bitcoin Blockspace, as speculative interest in minting tokens, granted via text file inscriptions, drove costs over the ceiling.
Bitcoin transaction counts reached new all-time highs, while the average fee paid to miners each block topped the block subsidy of 6.25 BTC. While it remains to be seen if these BRC-20 coins achieve long-term popularity, the temporary increase in mining revenue was undoubtedly a nice relief for miners following the brutal bear market of 2022. Let's dig more into the report to see how Bitcoin price predictions could get affected by this.
This week, a new ATH daily transaction total of 682k was established, surpassing the 2017 peak by 39%. Miners were able to fill blocks with a record number of transactions due to the tiny data footprint of text inscriptions and the high rates BRC-20 customers were ready to pay.
The average number of transactions per block more than quadrupled, rising from a usual baseline of roughly 2k to more than 4.3k per block.
Another on-chain metric from the data analytics firm suggests that Bitcoin possibly entering the bull market again as all the signals are in favour of BTC.
Glassnode's "Recovering from a Bitcoin Bear" signal is sending forth encouraging signals. All eight of the signal's parameters are now optimistic for Bitcoin, indicating that the top crypto asset by market size may be in the early stages of a bull market.
The graphic includes eight separate indicators that examine four basic factors: if the market is trading above key price models, whether the on-chain activity has increased, whether the market is profiting, and the extent of long-term holder supply domination.
Bitcoin (BTC) is now trading at $27,296.72 with a 24-hour trading volume of $15,380,073,154. This reflects a 1.06% increase in the previous 24 hours and a -0.78% decrease in the last seven days. Bitcoin has a market valuation of $528,920,105,217 and a circulating supply of 19 million BTC.
The daily chart shows that Bitcoin is now trading below its 21-day moving average, which it has not breached since April. This indicates that bears are in charge of the market and that the upswing is vulnerable to more losses. Furthermore, BTCUSD has formed a bearish head and shoulders pattern, which might indicate a further decline.
Given the present technical situation, Bitcoin is expected to remain in consolidation until its next substantial move. Technical indications point to a bearish market mood. The Relative Strength Index is in oversold territory. The MACD is likewise negative, and the Stochastic RSI is heading downward, indicating a pessimistic outlook.
In conclusion, Bitcoin is reciprocating between $26K and $27K which has been set for a while. The Glassnode "Recovering from a Bitcoin Bear" metrics suggest a bullish rebound from $26K. Overall, the Bitcoin market is facing a slow growth rate.
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