KEY POINTS

  • Bitcoin hit record highs on multiple metrics despite trading sideways at the low $9,000 levels for the last 7 days
  • Bitcoin is struggling to break past the $9,000 area
  • According to S2F model, Bitcoin's price is behaving just as predicted

Bitcoin hit record highs on multiple metrics Thursday despite trading sideways at the low $9,000 levels for the last seven days. 

Data on Glassnode suggests a number of non-price metrics for Bitcoin are currently approaching all-time high levels, which are records Bitcoin has not seen since the bull run of 2017. The number of new non-zero addresses, for example, has reached 3 million per week in May. The number of active addresses has approached nearly 5 million per week also in May, and is currently hovering at 4.7 million. 

The last time these metrics flashed those numbers were in January and February 2018 respectively. 

On Thursday, Glassnode’s Chief Technical Officer Rafael Schultze-Kraft revealed Bitcoin has again broken several of its records. Hourly on-chain activity on BTC is at its record high. Hourly new addresses are at a two-year high, hourly active addresses are at a one-year high, hourly transaction counts are at a ten-month high, and hourly spent outputs are at an all-time high. 

Despite positive sentiments for the above metrics, the price of Bitcoin has remained within the low $9000s in the last 7 days. Bitcoin again approached $8,950 yesterday on Coinbase but has recovered and bounced back to $9,000, which is both a psychological and key support since June 29. 

Traders, however, have observed the depreciating range. In the first and second weeks of June, BTC was trading sideways at $9,700. In the third week, it was trading at $9,300. This week, BTC is struggling to breach past $9,200 and has revisited $8,900 twice -- a key area that represents a 61% retracement beginning when Bitcoin rallied from $8,100 on May 10 to $10,400 on June 1. 

The sideways trend will continue as long as Bitcoin stayed on the $9,000 to $9,300 levels as key resistances above it are $9,500, $9,700 and $9,900. If $9,000 fails to act as support, Bitcoin might revisit the $8,800 level, which the world’s first cryptocurrency has not traded on since May.

Bitcoin, however, has fully recovered from the March 12 crash that affected even the global markets. It looks to be treading the same path it did before March, suggesting that the crash is more of an isolated event due to the coronavirus pandemic. This sentiment is shared by ‘PlanB,’ the creator of the popular Stock-to-Flow (S2F) model, who said Bitcoin is recently behaving exactly as it is bound to. The popular analyst is predicting an upsurge to $30,000 before 2020 ends. On the opposite side of the discussion, analyst Tone Vays predicted Bitcoin would not breach $10,000 this year.

Bitcoin is the best known virtual currency, but it may face a real problem next week Bitcoin is the best known virtual currency, but it may face a real problem next week Photo: AFP / INA FASSBENDER