Bitcoin Pushes To Break $12K

China is now on its next stage of testing as it gives 50k of of its citizens a total of $1.5 million of their digital yuan. By the end of October 18th, around 88% of the total giveaway was spent showing the success of the pilot program. What does the U.S. have to say about this? Jerome Powell, Chairman of the U.S. Federal Reserve, said “it’s more important for the United States to get it right than it is to be first.”

With other developing countries racing to create their own e-currency, the Bitcoin network remains anti-fragile and innovative. Institutional investors want out of cash and into finite commodities like gold, silver and bitcoin before the money machine goes ‘brrr’ again.

Bitcoin’s Ascending Channel

Technical analysis shows us that bitcoin is following its ascending channel, created after the March sell-off. This shows us a strong recovery and support along both 20- and 50-day moving averages. The chart below shows us that the bulls are in control as the upsloping 20-day exponential moving average is $11,201 and the relative strength index above 67.

BTC/USD daily chart. Source: TradingView

Bears will try to hold off the rally at the resistance line and if they succeed in pressuring the price to drop, price lower than the $11,178 support level is in play.

On-Chain Indicators

As for bitcoin’s on-chain data, trading volumes and transactions have been slow until recently (Oct. 19th). As of Monday, volumes on major exchanges have been up by 36% from the past month’s daily average. The $473 million volume flow is due to news of institution involvement and the much anticipated stimulus package.

Bitcoin volumes on major exchanges the past month. Source: Coindesk (CryptoCompare)

Miners’ revenues from fees have been the lowest since July 12th. It recently marked a three-month low of 3.49%. The lowest point hasn't been seen since July when revenue dropped to 2.52%. Transactions decreased by 40% from July 1st, which can be taken as a good thing. As volatility gets low, miners and exchanges are less reluctant to sell, making them build a strong price floor.

Miner revenue from fees. Source: Glassnode

Although not bitcoin, Ethereum continues to see adoption as more and more addresses are created. This doesn’t necessarily mean all these addresses represent a new user but when more addresses are created, more of the network and its ecosystem is being used.

Twitter: @santimentfeed

This graph shows Ethereum’s highest level of unique addresses since May 2018. This could have been caused by the gas fees returning to affordable levels, giving users of the opportunity to test out new protocols and dApps they’ve been waiting to be a part of.

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