Bitcoin Transaction Fees Surge as BTC Price Faces Selling Pressure
Bitcoin (BTC) has been experiencing a recent surge in transaction fees while facing selling pressure that has pushed the price below $37,000 due to selling by whales. Crypto analyst Will Clemente notes that Bitcoin network fees are now at their highest levels since the frenzy in May 2023.
Impact of High Network Fees
Clemente suggests that although high transaction fees may not be convenient for users, they contribute to increased mining incentives, ultimately bolstering the network’s security. As of November 12, over 505,000 Bitcoin Ordinals have been minted, driving the total number beyond 40 million.
Potential Price Correction
Analyst Ali Martinez warns that if Bitcoin loses crucial support at $36,400, its price could correct by 15-20% to $30,000. However, there is positive news in the derivatives market structure and technical set-up for BTC.
Positive Derivatives Structure and BTC Technical Set-Up
Clemente highlights a positive trend in market structure with a decrease in Bitcoin futures contracts collateralized with BTC/crypto from 70% to just 25%. This shift reduces the risk of significant liquidation cascades to the downside.
Potential Price Target
Analyst Faibik sets a $50,000 target for Bitcoin if it maintains a range between $34,000 and $38,000 for the next two months, potentially sparking a rally by mid-February and reaching $50,000 by late March 2024.
Hot Take: Analyzing Bitcoin’s Future Potential
In conclusion, while Bitcoin transaction fees are on the rise and the price faces selling pressure, there are positive indicators in market structure and potential price targets. It’s essential to conduct thorough market research before investing in cryptocurrencies as they remain subject to market conditions and volatility.
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