As Cryptokoin.com, leading crypto money experts announced 5 events that will affect the leading cryptocurrency Bitcoin and altcoins this week! Here are the details…
Cryptocurrency experts announced: 5 events that will affect Bitcoin and altcoins this week!
Leading cryptocurrency Bitcoin has found itself in the middle of the crypto agenda, with levels priced in by the pressure on the markets. However, while the disadvantageous volatility worries investors, investors are confused due to the congestion experienced in Binance the past day. Many experts have suggested that they are seeing signs of tension in BTC amid this turmoil. However, experts warn about breaking the $28,000 level.
On the other hand, macroeconomic data can deeply affect the BTC price. Investors are focused on the CPI and Q1 earnings reports, which will be released on May 10. However, while Bitcoin network metrics show the impact of current network activity, the data shows that miners are still selling their holdings, leading analysts to conclude that the 2022 bear market is still in play. With these critical notes, experts draw attention to 5 events that can affect the BTC price!
Bitcoin transaction congestion on Binance attracts investors’ attention
Bitcoin is under pressure with the suspension of withdrawals on Binance. The Mempool crisis experienced yesterday caught the attention of many investors, and Binance stopped withdrawals for Bitcoin for a few hours. However, Binance has stopped BTC withdrawals three times since the weekend, citing “congestion” in the Bitcoin network, simultaneously moving a huge pile of funds between wallets.
We’re aware that some data are showing a large volume of outflows from #Binance.
This ‘outflow’ are actually movements between Binance hot and cold wallets due to the BTC address adjustments.
— Binance (@binance) May 8, 2023
Binance’s moves came as large numbers of transactions entered the Bitcoin mempool, pushing the already high fees further into territory unseen for several years. However, investors follow the market within the FUD.
Bitcoin price drops to 2-week lows
Beyond some of the events surrounding Binance and fees, market participants continue to watch key levels for BTC/USD. Popular trader Captain Faibik sees $27,300 as a line in the sand as the pair slides below $28,000.
$BTC Ascending Broadening Wedge Sill in Play..!!
If Bulls can Successfully defend the 27.3k Support, it's likely that we'll see a Significant Bounce Back in the Coming days.#Crypto #Bitcoin #BTC #BTCUSDT pic.twitter.com/pwERANhUGE
— Captain Faibik (@CryptoFaibik) May 8, 2023
Another tweet during the day emphasized that there is a tightening wedge structure for Bitcoin and the logical result will now appear in the form of a breakout. Other analyst Andrew has bet on the 50-day exponential moving average (EMA), currently around $27,950, as a potential support zone that has already been breached on shorter time frames. However, according to TradingView data, the day’s low of $27,617 marks Bitcoin’s deepest drop since April 26.
However, after the restrictions in Binance and the FUD, CryptoBusy quoted the Fibonacci retracement levels and quoted the following:
Bitcoin as a network is always stable, but exchanges and wallets need more scalability solutions. BTC as an asset being retested due to selling pressure and FUD!
CPI data could be critical for Bitcoin this week!
On the other hand, experts draw attention to the CPI data. CPI data can profoundly affect Bitcoin price macroeconomically, experts say. On May 10, the CPI will be scrutinized for signs that inflation continues to fall, which could potentially increase the room for lawmakers to relax economic policy.
If there is one data release that could sink or ignite a stock rally, CPI would be a good candidate. Coming Wednesday 8:30 am ET.
— Chris Ciovacco (@CiovaccoCapital) May 7, 2023
As you may recall, a slight drop below market expectations in April accompanied Bitcoin’s rise to new ten-month highs. However, the CPI is just one of several key US datasets to be released this week, along with the release of jobless claims and Producer Price Index figures. The week will be the last of major companies’ first-quarter earnings reports, as four Federal Reserve speakers take the stage. That’s why experts point out that CPI data is extremely important.
NVT data is experiencing its highest levels since 2019
Confusion caused by high fees is already affecting long-term Bitcoin (BTC) metrics. Among them is the network value-to-transaction (NVT) ratio, which reached its highest level in four years on May 8. As confirmed by on-chain analytics firm Glassnode, NVT is currently at levels not seen since 2019.
Created by Willy Woo, the NVT ratio measures the relationship between the value carried on the chain and the overall market value of Bitcoin. However, Willy Woo quoted:
When BTC’s NVT is high, it indicates that the network valuation exceeds the value transmitted in the payment network; this can happen when the network is in high growth and investors consider it a high yield investment or alternatively when the price is in an unsustainable bubble
Bitcoin miners continue to reduce their BTC holdings
BTC reserves are at two-year lows, in a sign that Bitcoin miners continue to grapple with the consequences of the 2022 bear market. Data from on-chain analysis platforms show that despite the recovery seen in BTC price until 2023, the amount of BTC in miners’ wallets is still on a downward trend. Miners are currently holding 1,826,695 BTC, which is the lowest since July 2021.
However, miners faced significant pressure in 2022 as BTC/USD risked exceeding revenue from mining on a cost basis. Last week, separate figures revealed that miner revenues since 2010 have totaled over $50 billion.
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