After a recent high of $13,829 on June 26, 2019, the price of Bitcoin hit a low of $9095 before returning above $10,000, with a value of $10,700 per BTC on Tuesday, August 20.
The oldest of the cryptocurrencies experienced an almost continuous increase between April 2 and its last highest. It is therefore legitimate for investors to start questioning the possibility of a sales signal on Bitcoin.
Analysis of buyer and seller signals on the king of crypto-currencies
Several signals, both on the Bitcoin chart and the blockchain data, indicate the possibility of a return of the downward trend on the BTC. Be careful; however, the BTC may see its valuation soar upwards. A drop in valuation is simply one of the possible scenarios. You can always head up here ▷Acheter Bitcoin en 2019 – Meilleurs Sites avec Achat à Moindre Frais for more information.
1 – A decrease in the number of confirmed daily transactions
Confirmed Daily Transactions or Confirmed Transactions Per Day is a relevant indicator to be noted on the blockchain. The evolution of the number of confirmed daily transactions allows us to study the “real” use of Bitcoin as a currency. Although this data alone is not enough to indicate a trend, it serves as an indicator that must be compared with others so that we can conclude.
After a recent high of 379,181 confirmed transactions on June 30, 2019, the number of transactions recorded on the blockchain decreased significantly, reaching 306,908 transactions on July 29, a 19% decrease. This figure reflects a sharp slowdown in use and therefore demand for Bitcoins for this month of August 2019.
2 – Increasingly low bullish peaks
Since the last high of $13,829, the Bitcoin price has failed to rise above $14,000. The previous high points of the BTC reached $13,162 and $12,292 respectively on July 10 and August 6. Besides, the symbolic threshold of $10,000 for Bitcoin was broken twice downward between July 16 and 18, then between July 24 and August 1. A clear signal that Bitcoin sellers are taking control to sell Bitcoin, at least in the short term.
3 – The NVT Ratio increased sharply
The NVT Ratio or Network Value to Transaction was created and popularized by Willy Woo to estimate the valuation of a cryptocurrency. The aim here is to compare the total value of the Bitcoins in circulation with their actual use within the network.
The higher the value of the TGS, the greater the risk of a bubble and a sudden drop in prices, as demand does not justify such a high price for Bitcoin. On the other hand, if the NVT ratio is low, it means that Bitcoin is underestimated, the demand for tokens within the network being high, it will feed a future increase.
Over the past two years, the average value of the TGS ratio was 402.92. However, there was a recent bullish peak with a value of 2,199.71 on August 12. This unusually high value, almost 5.5 times the average value of the last two years, indicates that there is a risk of a fall in the price of Bitcoin. The BTC is overvalued compared to its actual daily use, according to this indicator. Read more here!
Selling Bitcoin: a short-term decision
We can conclude that selling Bitcoin may not be such a bad idea in the short term taking these three downward signals into account. The oldest cryptocurrency may be overvalued at this time, and its prices may need to be adjusted downwards.
However, it will be interesting to monitor the evolution of these indicators. After a potential drop in the price, it is very likely that in the medium term this will offer the possibility of buying Bitcoins at a “good price” by anticipating a future bullish wave.