- Bitcoin price has displayed a sustained downtrend over the past four days with lower highs and lower lows.
- BTC could revert to $50,000 amid low trading volumes and enhanced volatility characteristic of weekends.
- The bearish thesis will be invalidated if BTC breaks and closes above the $52,985 range high.
Bitcoin (BTC) price could define a clear directional bias this weekend, amid low trading volumes and heightened volatility. Meanwhile, markets are perusing the 120 pages of emails between BTC creator and one of his earliest collaborators.
Also Read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Possible start of a trend reversal for BTC
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Satoshi Nakamoto’s emails with early collaborator on Bitcoin
In a recent post on X, one of Bitcoin creator Satoshi Nakamoto’s earliest collaborators, Martii ‘Sirius’ Malmi, shared emails among themselves. In the 120-page email history between them, Malmi revealed that Satoshi had envisioned the Bitcoin network having a maximum of 100,000 nodes. The latest data shows that the number of reachable nodes in the Bitcoin network typically range between 10,000 and 12,000.
The emails also reveal that Satoshi Nakamoto had anticipated more “newbies” and that BTC mining would be less energy intensive than the legacy banking system. Other highlights, as summarized by @pete_rizzo_, include:
- Satoshi foresaw at least one viable, non-monetary use for Bitcoin, backing the time-stamping use case.
- Satoshi was concerned about his legal risk in launching Bitcoin, noting he was “uncomfortable” with explicitly labeling it an investment.
- By July 2009, Satoshi was tired, saying he “needed a break” from Bitcoin.
- He believed in the easy adoption of Bitcoin, saying BTC was easy to obtain given that you could mine it on a computer.
- In June 2010, someone offered to donate $2,000 to Satoshi for his BTC work.
- The emails also reveal that Satoshi removed the language that Bitcoin was “anonymous” from http://Bitcoin.org.
We finally have a copy of the email Satoshi sent other developers before taking his name off the project website.
As they’ve said, Satoshi doesn’t mention his intention to step back from the project at all ✨ pic.twitter.com/d78bx061A2
— Rizzo (@pete_rizzo_) February 23, 2024
Bitcoin price outlook as Satoshi’s emails to developer come to light
Bitcoin price is trading with a bearish tilt on the daily time frame, recording a series of lower highs and lower lows. On higher time frames, however, such as the three-day and the weekly timeframes, the outlook is rather indecisive.
With a bearish intermediate trend (daily time frame), the Relative Strength Index (RSI) shows Bitcoin price could drop further as momentum continues to decline. The histogram bars of the Awesome Oscillator (AO) have also turned red and are edging toward the midline.
Enhanced seller momentum could see Bitcoin price retest the $50,000 psychological level. An extended fall could send BTC to the $48,000 milestone, or in a dire case, extend a leg down to the $40,000 psychological level. Such a move would denote a 20% drop below current levels.
BTC/USDT 1-day chart
On the flipside, enhanced buying pressure could see Bitcoin price break above the range by shattering the $52,985 roadblock. This would clear the way for BTC market value to reach $55,000, or in a highly bullish case, reach the $60,000 psychological level.
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