Crypto markets dive, but Bitcoin’s price remains resilient — here’s why that could change
Bitcoin is currently in the red over the last 14-day stretch, registering losses of 14.6%, but this pales in comparison to the rest of the market
- Experts believe that Bitcoin’s ongoing consolidation trend could see the currency make a major upward push over the coming few days or weeks.
- Bitcoin’s total quarterly transaction volume surged past that of PayPal’s throughout 2021.
- BTC’s market dominance index (DI) is currently limping around the 39.6% zone.
After trying to reclaim support near the $59,500 range yesterday, Bitcoin (BTC) has continued to showcase small corrections. The world’s largest cryptocurrency by total market capitalization has seemingly found support around the $58,000 mark. At press time, BTC is trading at a price point of $55,111.
Pseudonymous independent analyst Rekt Capital believes that if Bitcoin can maintain its ongoing price action, a convincing trend reversal may be on the cards, spurring the flagship crypto’s value in an upward trajectory over the coming few days. A similar sentiment was also echoed by crypto trading firm QCP Capital. Their crypto analysis team believes that the recent selling pressure has been “capped” and that the market seems to be consolidating rather than showing further signs of dropping.
While large inflow and outflow BTC volumes have been witnessed across all exchanges — signifying an active market — data suggests that the digital currency is currently showcasing its lowest levels of volatility over the last six months.
Bitcoin network activity continues to rise
According to information made available by market intelligence firm Blockdata, the total volume of dollar-denominated transactions facilitated by the Bitcoin network has already exceeded that of PayPal. The firm also noted that BTC could overtake payments giant Mastercard as early as 2026.
Throughout 2021, the Bitcoin network processed about $489 billion worth of transactions every quarter, which is substantially larger than PayPal’s volume of around $302 billion. Furthermore, after just a decade of action, Bitcoin’s total transaction throughput rate has scaled up to 27% of Mastercard’s per quarter volume of around $1.8 trillion and about 15% of Visa’s $3.2 trillion.
As the Indian government gets ready to table a bill looking to possibly ban “private cryptocurrencies” during its upcoming winter parliament session, it will be interesting to see how the market continues to respond to these developments. Since hinting at the ban recently, the Asian nation’s local crypto market has suffered heavy losses, with most major cryptos — including Bitcoin and Ethereum — losing over 15% of their value.
Disclosure: The author owns a range of cryptocurrencies at the time of writing