Against the backdrop of a decrease in price, the capitalization of Bitcoin decreased and fell below $1 trillion. Thus, in just a week and a half, the price of Bitcoin dropped by $17,000, or almost 30%.
This was primarily due to the drop in the hashrate caused by power outages in China. As a result, many miners were forcibly disconnected from the network. This created an increased load on the network and fees on the Bitcoin network skyrocketed to $60. The last time such high fee values were observed was at the end of 2017, at the very peak of a bull market.
On the other hand, Ethereum behaved exactly the opposite. Its price set a new all-time high at $2,644. After that, the chart decreased slightly and now turned up again. In addition, a new historical maximum was set for the week for the number of daily transactions on the Ethereum blockchain – now it is 1,560,000. This happened against the backdrop of an 11% increase in the gas limit in the block by miners.
Ethereum rival — Binance Smart Chain (BSC) has also set a new all-time high for the number of transactions per day on the network. This record was set on April 21st and amounted to over 9 million transactions per day, which is 6 times more than on the Ethereum blockchain. At the same time, over 2 million transactions were made on the largest DEX on BSC — PancakeSwap.
In other big news, it’s worth noting that the Venmo mobile app has added support for Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Any user can buy cryptocurrency at Venmo from $1 and up. As a reminder, Venmo is a subsidiary of PayPal and has over 77 million users.
Another big news was the fact that Coinbase is about to add the USDT stablecoin to its platform. At first, USDT will be serviced on the ERC-20 standard, and only then it is possible to add other token standards. Long time Tether judged with US authorities. However, recently all disputes have been settled and now USDT is being added to the largest American crypto exchange.
The past week has been very eventful. We saw a strong collapse of the crypto market and the first cryptocurrency, but at the same time, many records were set that were important for the development of the crypto industry. Let’s take a look at the Bitcoin chart and see what to expect in the coming week:
As you can see from the chart, Bitcoin has been on a downward trend for the last 10 days. However, today it bounced up immediately by 6.7%, thus showing a reversal trend. A reversal is also indicated by numerous indicators, including Stochastic, MACD, RSI and Bollinger Bands. All this allows us to speak about a high probability of growth.
The closest mark to which Bitcoin may rise is the $56,000 level. The nearest resistance level is located here. Most likely, the chart will be able to break it and gain a foothold higher, so the next target will be $60,000. There’s still time to buy BTC for further upward movement.
Despite a long decline, Bitcoin continues to be in an uptrend. And even the last low at $47,000 logically fits into an uptrend.