Forex and Crypto News

Some factors show the price of Bitcoin can be bullish

14:44 16 October /2020

Since October 8, the price of Bitcoin has been showing active growth. It even managed to reach a high of $11731 on October 12 but was unable to gain a foothold at that level. Even though the price is showing pullbacks, it still holds above the level of $11000. This fact instills confidence in traders and investors. Trading Bitcoin above the level of $11000 suggests that the price may start a new rise soon.

The confidence that the price of Bitcoin could start a new rally is added by some facts. First, there is a growing interest in Bitcoin from private companies like Square. If until recently the sentiments were in the fear zone, now they have moved to the greed index. This speaks to the growth of confidence in Bitcoin. Extreme fear can be a sign that investors are too worried. When investors get extremely greedy, it means the market needs a correction.

greed index.jpg

Moreover, the rise in the price of Bitcoin supports the rise in the hash rate. On October 14, the Bitcoin hash rate reached a record level, exceeding 140 EH/S.

hash-rate-1.pngSource: Blockchain.com

Since the beginning of the year, Bitcoin hash rate has grown by 36%, which indicates the growth of network security and the strong position of Bitcoin.

It is also worth noting the increase in transaction fees on the Bitcoin network. In June, we saw a drop in fees, but with the rise in the price of Bitcoin, transaction fees also began to rise.

Transaction fees currently account for almost 9,5% of miners' income and have become a significant source of miners income since May halving.

And according to a study by Arcane, mining rewards no longer affect miners' income as much as they did in 2017. Mining remains profitable as the Bitcoin hash rate grows.

The market appears to be preparing for a new rally, however, the duration or intensity of the same cannot be known.

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