Bitcoin’s price faced a disappointing turnaround during the last 2 weeks of February after the king coin’s bullish run-up to that point was abruptly halted with a significant price depreciation.
After crossing the $10,000 mark on 11th February, Bitcoin’s price breached key supports level at $9800 and $9300 consecutively on 19th and 25th February.
Bitcoin’s On-Chain fundamentals
Since the start of March, Bitcoin has managed to incur a rise of over 8 percent, allowing the asset to breach past the $9000 range. According to recent data, Bitcoin’s improving fundamentals may have played a key role during this period.
Bitcoin Active Addresses
Statistics from glassnode indicated that the number of active addresses on the Bitcoin network has spiked again since registering a recent low of around 600,000 addresses. On 6th March, the active addresses were as high as 806,000, which underlined the increasing activity from the users.
Bitcoin’s Network Hash Rate
Another important metric scaling up the charts is Bitcoin’s network hash rate. Bitcoin’s price does not have a direct correlation with the hash rate but it is an important metric that measure the network health. The hash rate had depreciated under 100 million TH/s on the 4th week of February but over the past few days, the rate has climbed back above 125 million TH/s, indicating developers are actively present in the Bitcoin network.
Lastly, the number of new non-zero addresses entering the frame registered a significant improvement as well, as the addresses jumped from 330,000 on 23rd February to above 430,000 on 6th March.
However, Bitcoin’s price suffered another dip over the past 24-hours which accounted for another slump under $8800. With the price hike over the past week, the current depreciation could be a timely correction before another bullish rally.
Bitcoin will go to $135,000 over the next 9-12 months
Bitcoin’s price recently corrected itself under $8400 but popular Bitcoin analyst, Willy Woo remained unfazed as he believes that Bitcoin could be on its 4-year bullish cycle at the moment. According to Woo, Bitcoin’s price as an aggregated average is one of the most reliable metrics to foresee Bitcoin’s movement in the charts. He stated,
“You could go 35 times the cumulative average of the price, and that’s actually picked every single top in the ten-year history of Bitcoin.”
Factoring in the above condition, Woo stated in a recent interview with Max Keiser, it is ‘common sense’ for Bitcoin to cross $135,000 by the end of 2020 or start of 2021 due to the arrival of Bitcoin’s bullish cycle which surfaces during the 4th year after the previous bullish rally.
However, the Adaptive Capital partner believed Bitcoin’s price still lacked substantial value in terms of market cap to be considered as a medium of exchange. He said,
“Bitcoin’s current valuation is one-sixth of a trillion. Fiat is $90 trillion. So, In order for Bitcoin to be considered as a medium of exchange, the market cap needs to improve significantly.”