Crypto markets dive, but Bitcoin’s price remains resilient – here’s why that could change
BTC 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 BTC'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 has surged past that of PayPal's over the course of 2021.
- BTC's market dominance index (DI) is currently limping around the 39.6% zone.
After having tried to reclaim support near the AUD$83,000 (US$59,500) range yesterday, Bitcoin, the world's largest cryptocurrency by total market capitalisation, has continued to showcase small corrections, seemingly finding support around the AUD$81,500 (US$58,000) mark. At press time, BTC is trading at a price point of AUD$81,346.
Pseudonymous independent analyst Rekt Capital is of the view that if Bitcoin is able to 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, whose 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 6 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.
Over the course of 2021, the Bitcoin network processed about US$489 billion worth of transactions every quarter, which is substantially larger than PayPal's volume of around US$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 US$1.8 trillion and about 15% of Visa's US$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 BTC and ETH – losing over 15% of their value.
Disclosure: The author owns a range of cryptocurrencies at the time of writing