A look at the data situation: quo vadis, Bitcoin?

Among other benefits, Bitcoin is a giant step towards more transparent financial markets.

In addition to transaction activity, indicators such as the hash rate can be read off the blockchain. Time to take a look under the hood.

Yawn. Bitcoin’s price action this Corona December is shaping up to be anything but volatile. Rather, the No. 1 cryptocurrency has been describing a sideways trend since the beginning of the month. Quo vadis, Bitcoin? A look at the data situation.

Hash Rate

One thing first: As things stand, there is no need to worry about the hash rate. The accumulated computing power in the network lost significant momentum at the end of October. In the meantime, however, the miners are back on board and are supplying Crypto Profit with sufficient energy. According to market observers, this October’s slump was due to the end of the rainy season in Sichuan. Miners run their Bitcoin mines in the southwestern Chinese province on electricity generated from hydropower. If the rains stay away, dam levels drop and electricity becomes more expensive. This usually pushes miners to change locations, which is also reflected in the hash rate.

Currently, the hash rate is heading for a new all-time high. At the time of going to press, it is 137 exahashes per second (EH/s) and is thus only around 6 percent behind the all-time high of 146 EH/s. This is an all-round bullish signal. A bullish signal all around.

Active Addresses Sentiment: Slow Recovery?

Sideways movements like this one may not be very productive for observers. However, they are essential for long-term price development. Bitcoin was overheated after its November rally, which even manifested itself in a new all-time high. The setback to just below 18,000 U.S. dollars (USD) on December 9 can be confidently regarded as a healthy price correction.

If you take a look at the Active Addresses Sentiment, for example, you will see that BTC has been trading in the „red zone“ for quite some time, more precisely since October 19. We remember: if the Bitcoin price rises too fast in too short a time, it can’t be supported by the growth of active addresses, a price correction is likely.

These days „Orange Coin“ traded again in the healthy area between red and green dotted line. So, the network preconditions for a new uptrend are being laid.

Transaction activity

How big Bitcoin has already become can meanwhile also be seen in the transaction activity. Every day, 250,000 to 300,000 BTC change addresses. With a market value of around 18,500 US dollars, that is between 4.6 and 5.5 billion US dollars per day that the network processes.

This makes BTC the largest decentralized money network in the world. Even if BTC doesn’t cause a stir for a while, the cryptocurrency has been functioning flawlessly since its genesis – and transports ever larger sums of money.

Profitable Bitcoin Days

And another note for bearish-minded Bitcoiners: crab runs and price drops don’t last long in bull markets. If you take a look at the profitable Bitcoin days, you will see that it was currently a good idea to invest in the cryptocurrency on 99.6 percent of the days. Only on 16 days was the price higher than today.