The price of BTC still maintains the bearish direction, but a significant rejection of low prices suggests the exhaustion of the selling force. Reserves on exchanges have declined a sign that holders keep their coins in cold wallets.

Although Bitcoin has accumulated some profits in the last week, they are still not enough to regain the short-term upward trend. That situation creates distrust among investors, who believe that the bullish run has ended.

When writing this article, BTC is trading at around USD 48,710 and has accumulated a 1.7% profit in the last 24 hours. Its trading volume is above USD 33.3 billion, and its market capitalization is approximately USD 921 billion, according to CoinGecko.

The daily BTC/USDT chart indicates that the price is still in a bearish direction. The value of Bitcoin has hit increasingly low highs and lows. However, a strong rejection of low prices earlier in the month, together with a recent higher low, suggests the exhaustion of the selling force.

Despite that, the price of Bitcoin has not broken the resistances, so it could drop further or have a sideways movement in the short term. The closest resistance that it should break is at USD 50,500.

On-chain Metrics Indicate the Bullish Run of BTC Continues

Although the price has dropped, the reserves of coins on exchanges have also fallen. That is a sign that holders are still storing their BTC in cold wallets, awaiting an increase in the long term.

When the bullish run ended, Bitcoin stocks on exchanges hit a 4-year low. While a growing number of coins were entering cryptocurrency exchanges during the 2018 bear market, the opposite is happening now.

Weekly metrics show a bullish bias for the long term, which is uncertain regarding the near future.

In terms of supply and demand, the indicators are generally bullish. The same is true of those that evaluate the behavior of Bitcoin whales.

For the most part, technical oscillators used to track the price in the short term are neutral.

The market sentiment used to forecast short-term price action is slightly bearish.

In a few words, most on-chain indicators are neutral except for the S2F, which remains very bullish for the next few months.

A Bullish Dominance Indicates that the Price Has Hit the Bottom

The weekly analysis reveals that buyers remain the dominant force in the Bitcoin market. For that reason, the price of the pioneering cryptocurrency is likely to cause a surprise at any moment.

The recent drop in the price of Bitcoin reached a crucial support zone, close to USD 43,000. The rejection of that level seems to signal the beginning of new momentum that could resume the bullish run.

Nothing seems to confirm yet whether the bulls have regained control over BTC trading. However, the extent of the decline makes it relevant to monitor the behavior that favors the higher trend.

The current cryptocurrency market crash has led Bitcoin and altcoins to suffer significant falls in recent weeks. However, the pioneering cryptocurrency has recovered from its worst lows, resuming and exceeding its previous highs.

By Alexander Salazar

Although the number of coins deposited on exchanges has decreased, it is still unclear whether the bulls have regained control. The drop in the price of Bitcoin has affected other cryptocurrencies; so many investors have withdrawn their holdings.

The price of the pioneering cryptocurrency seems to be heading back to USD 60,000. However, the number of transfers from Bitcoin addresses to exchanges recently reached a new 13-month low of 4,197.9, according to Glassnode.

The metric tracking the number of unique addresses that send funds to exchanges had recorded a 13-month low of 4,202.91 on November 24^th.

Curiously, exchange users deposited an increasingly large number of coins during the 2018 bearish market. The exact opposite is currently happening, but there are no confirmations that the bulls have regained control.

In that regard, Bloomberg analyst Mike McGlone recently predicted that next year could be bullish for Bitcoin. The crucial question near the start of 2022 is whether it is reaching a peak or consolidating an upward market trend.

Where Investors Prefer to Keep their Bitcoin

There has been a reduction in the amount of Bitcoin on exchanges in recent weeks. That seems to indicate that investors prefer to keep their crypto assets outside those platforms, waiting for a rise in the price.

The drop in the value of Bitcoin has also affected other cryptocurrencies such as Ether (BTC). The fear of losing their money has led many investors to withdraw their cryptocurrencies from the market.

Most investors having their crypto assets in cold wallets usually move their Bitcoin to benefit from high prices. However, the current volatility of the pioneering cryptocurrency has caused them many losses.

Despite the drop in the value of Bitcoin, the reserves of coins on exchanges are also declining. That is a sign that holders continue to move their BTC to cold wallets waiting for a price rise in the long term.

An analyst predicts the price of Bitcoin will soon reach record levels

Cryptocurrency analyst Kevin Svenson believes that Bitcoin will experience strong growth before reaching record levels soon. He used the so-called three peaks and domed house pattern to predict the future of the cryptocurrency.

The expert said that the price of Bitcoin saw three growth peaks between March and May. He also noted that it fell and returned to those highs in November, which reflect the primary characteristics of the pattern.

Svenson believes the price of the pioneering cryptocurrency has to experience a sharp rise (to the ceiling) after staying at the current level (first floor). Everything suggests that the support level will reach above the three peaks and the first floor.

According to that pattern, the price of Bitcoin should move above USD 70,000, Svenson said. He also predicted that a new market structure could emerge for at least a short period. Concerning the post-ceiling stage, he thinks there will be a fall like the framework of this pattern has recorded several times.

Bitcoin is currently trading at around USD 47,691 and has accumulated a profit of 1.0% in the last 24 hours. Its daily trading volume is above USD 27.6 billion, and its market capitalization is about USD 901 billion, according to CoinGecko.

By Alexander Salazar

Too harsh cryptocurrency regulations would kill businesses, said economist Phillipp Sandner. He believes that regulators and governments should prioritize free trade to allow companies to develop new applications.

Economist Phillipp Sandner and global risk expert Dante Disparte are two professionals immersed in the cryptocurrency ecosystem. They recently spoke about the adoption of stablecoins and the digital euro worldwide.

The analysts explained that regulations on cryptocurrencies should only focus on consumer protection from a neutral point of view. They believe that this would help fuel the growth of the industry of crypto assets. These would include stablecoins and CBDCs like the digital euro, the values ​​of which would remain volatile relative to fiat currencies.

In addition to being an economist, Phillipp Sandner is an expert in teaching blockchain technology. For his part, Dante Disparte is the director of global policy and strategy for the technology company Circle.

Sandner and Disparte think adopting crytocurrencies could boost money transfers between Europe and Latin America. In that sense, MasterCard recently said that a global regulation could promote the growth of that sector. That company and several financial institutions and payment platforms have considered incorporating Bitcoin and other crypto assets.

When writing this article, Bitcoin is trading at around USD 48,559 and has accumulated a 3.6% in the last 24 hours. Its daily trading volume is above USD 30.9 billion, and its market capitalization is about USD 917.8 billion, according to CoinGecko.

The Free Trade in Cryptocurrencies Contributes to the Growth of That Sector

The two experts explained that regulations on cryptocurrencies do not help if they impede the growth of that industry. They stressed that neither regulators nor governments should limit technological innovation such as crypto assets. On the contrary, they believe that those entities should prioritize free trade so that companies can continue to develop new applications.

Phillipp Sandner stated that a too harsh regulatory regime would kill the entrepreneurial spirit around crypto assets. Dante Disparte agreed with Sandner that the balance should allow encouraging responsible innovation. That would contribute to adopting cryptocurrencies within a political framework that promotes them.

Sandner pointed out that companies rather than the State emit 95% of the money in circulation that generates value. For example, he said that all technological innovations tend to develop in the private sector within free trade agreements. Furthermore, he stated that this expanded the role of the US dollar around the world.

The economist also mentioned the SWIFT code to recall that a global decision allowed issuing international bank transfers under a single system. He believes that it is also possible to promote that with stablecoins and the digital euro if there are no limitations on their operation.

Sandner and Disparte said that they expect more adoption of stablecoins in the first quarter of next year. They predicted that 2022 would be the year that blockchain, the technology enabling cryptocurrencies, could change the world.

The growing relevance of cryptocurrencies in the economy is increasingly evident, which governments and regulators do not overlook. For that reason, some authorities try to control and prohibit their adoption and use, with which Sandner and Disparte disagree.

By Alexander Salazar

Lucas Costa believes that two crypto assets could cause surprise by initiating a bullish move during the market crash. BNB has accumulated a 0.81% profit but would continue to correct, while SAND has not yet resumed the upward trend after losing support.

Lucas Costa, a market analyst at BTG Pactual Digital, recently published a study. He highlighted that Binance Coin (BNB) and The Sandbox (SAND) are cryptocurrencies with short-term reaction potential.

The expert analyzed those two cryptocurrencies against BTC, attempting to predict their future in the market. He sought to determine a bullish possibility amid the deep decline in the price of the pioneering cryptocurrency in recent weeks.

The Price of BNB Could Hit New Highs

Concerning BNB, it is the native cryptocurrency of the ecosystem of the cryptocurrency exchange Binance. Costa noted that this crypto asset accumulated a profit of 0.81% this week. However, he believes that its value could continue to correct in the short term.

The analyst also argued that the price of BNB broke the resistance at 0.010540 BTC. He believes that such support could lead the cryptocurrency to hit new highs and generate a breakout against Bitcoin. Furthermore, he suggested that the next few days would allow further Fibonacci expansions at 0.012041 BTC (141.4%).

BNB is trading at around 0.0110717 BTC and has accumulated a 1.8% profit in the last 24 hours. Its trading volume is above 35,162 BTC, and its market capitalization is about 1,857,488 BTC, according to CoinMarket.

The Value of SAND Resumes a Bullish Movement

According to Lucas Costa, another crypto asset with the potential for a rapid recovery amid the market crash is Sandbox (SAND). Between October and November, the metaverse cryptocurrency appreciated by about 1,200%. At that time, it had a 21-period moving average at 0.00010297 BTC.

The price of SAND lost support, so the prospect of breaking the high of 0.00014825 BTC high is not yet possible. It is a matter of time before the value of the cryptocurrency reacts and resumes an upward movement, even during the market crash.

SAND is trading at around 0.0001065 BTC and has accumulated a 7.9% profit in the last 24 hours. Its trading volume is above 23,622 BTC, and its market capitalization is about 97,611 BTC, according to CoinMarket.

The Brazilian expert recently compared charts of the BNB/BTC and SAND/BTC pairs with the movement of other cryptocurrencies. According to them, there was a lot of selling pressure in the market in the last few days.

Chainlink (LINK/BTC), Polkadot (DOT/BTC), and Uniswap (UNI/BTC) did not show more consistent on-chain data for a short-term breakout opportunity. For that reason, Costa believes that BNB and SAND would be in a better position to increase their prices.

The study by the Brazilian analyst reveals the great growth possibilities of the BNB and SAND cryptocurrencies. However, it is a matter of time before the market resumes the upward trend before its crash.

By Alexander Salazar

The fee cost per transaction on the Ethereum network has risen so much that users have reduced the activity. In addition, that situation seems to have led them to look for other alternatives whose rates are lower.

The increasing cost of fees per transaction on the Ethereum network causes discomfort among users. The high rates indicate the growing demand for space in each block and are one of the reasons for the reduction in the activity.

According to Etherscan statistics, the fees per transaction exceed USD 20 on average. However, using a smart contract is much more expensive, as it requires a fee payment above USD 60.

EIP-1559, the network improvement proposal activated on August 5^th, suggested that the cost of fees on Ethereum would gradually decrease. That upgrade changed the payment of fees, as part of it burns and part is a tip for miners.

Contrary to expectations, EIP-1559 has not caused transaction fees to decrease, as they have not stopped increasing.

The burning of fees may not have been effective as not all users are taking advantage. The volume of transactions that implement EIP-1559 rates is still 68%. Hence, around 32% of Ethereum trades are paying more than required.

Users Seem to Seek Alternatives to Avoid High Fees on Ethereum

Many people are using the Ethereum network in another way due to the high costs of transaction fees. They seem to have realized that transferring less than USD 100 is not worth it. As the amount they must pay exceeds USD 20, they have had to reduce the frequency of such operations.

Data from Glassnode reveals that Ethereum fee usage has reached the lowest level in 4 months. That seems a sign that users seek alternatives with lower fee costs.

Due to the high fee cost, many have decided to abandon Ethereum. Su Zhu, CEO of Singapore hedge fund Three Arrows Capital, tweeted that he would be leaving the network. The Singaporean executive believes that the founders of the decentralized blockchain have forgotten about their users.

Much of the community supported the tweet of Su Zhu, which he sees as a sign that users are angry. They expected a reduction in fees but then realized that they had to pay between USD 100 and USD 1,000 per transaction. Although the situation is dystopian, he stated that they celebrate the burning of rates.

Adoption among new users of the Ethereum network is difficult due to expensive fees. Additionally, Su Zhu believes that this extends to those looking to implement smart contracts.

According to data from BitInfoCharts, the average fee cost on Ethereum has skyrocketed by 1,360% since the beginning of June. They went from just USD 2.80 to USD 40.19 in just six months.

Ether (ETH) is the second cryptocurrency by market capitalization, so investors are waiting for a prompt solution to that problem. In that regard, the blockchain seems to be undergoing an upgrade to stabilize the costs of fees.

By Alexander Salazar