Bitcoin (BTC) has been facing some selling pressure off-lately with the BTC price trading under $37,000 amid some selling by whales. On the other hand, the Bitcoin network transaction fees have continued to grow.
Bitcoin Fess Shoot-Up
As popular crypto analyst Will Clemente says, the Bitcoin network fee has touched its highest levels since the ordinals frenzy earlier this year in May 2023.
Transaction fees on the Bitcoin Network are now at their highest level since the ordinals frenzy back in May pic.twitter.com/aUqU4LL8G7
— Will (@WClementeIII) November 13, 2023
However, the analyst adds that there’s no reason to complain much about the high network fees of Bitcoin. While slightly elevated transaction fees may not be the most convenient. However, as a Bitcoin holder, these higher fees contribute to increased mining incentives, ultimately bolstering the security of the network, he added.
As of November 12, the total count of minted Bitcoin Ordinals surged to a record-breaking 505,000, predominantly fueled by BRC-20. This milestone propelled the overall number of Bitcoin Ordinals beyond 40 million. Notably, Atomic achieved an impressive minting of over 28,000 on the same day, resulting in fees amounting to 2.63 BTC. This stands as the second-highest fee payout since the protocol’s inception on September 23.
At press time, the BTC price is trading at $36,706, a bit higher above its crucial support at $36,400. Crypto analyst Ali Martinez says that if Bitcoin loses this support level, its price can easily correct another 15-20% all the way to $30,000.
#Bitcoin has found stable support around $36,400, but if this level breaks, the next critical demand zones for $BTC are at $34,300 and $30,200. pic.twitter.com/5yY6fwbVq3
— Ali (@ali_charts) November 14, 2023
Positive Derivatives Structure and BTC Technical Set-Up
Analyst Will Clemente further explains that a notable and positive trend in market structure is the consistent decrease in the percentage of Bitcoin futures contracts collateralized with BTC/crypto over the past nearly three years, dropping from 70% to a current level of just 25%.
When holding a long position in BTC with BTC as collateral, a market downturn increases the risk of liquidations, as the collateral value declines in sync with the Profit and Loss (PnL). However, with futures now predominantly collateralized in dollars, the overall market is less prone to significant liquidation cascades to the downside. This shift reduces the susceptibility to large-scale liquidations, though it doesn’t eliminate the possibility entirely.
Cryptocurrency analyst Faibik, known as @CaptainFaibik on X, conducted a thorough assessment of the Bitcoin price trajectory, establishing a $50,000 target for the digital asset. As per the analyst’s analysis, if Bitcoin maintains a range between $34,000 and $38,000 for the next two months, there is potential for a halving rally to commence by mid-February, reaching the $50,000 mark by late March 2024.
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