The emergence of Bitcoin ordinals alias NFTs and the BRC-20 market has significantly increased the average Bitcoin transaction fees in the past few weeks. The Bitcoin average transaction fee spiked to a 12-month ATH of around $19.21, with some centralized exchanges charging as high as $60 to process. Nevertheless, some exchanges are navigating the high Bitcoin congestion through the use of the lightning network.
As the miners enjoy profitable block rewards, crypto investors and users are opting for cheaper and more efficient blockchains at the expense of the Bitcoin network. As a result, the Bitcoin sell pressure could increase in the coming days, pushing the asset toward $25k
Bitcoin Bullish Stance
$BTC Continues to trade within the Confines of Ascending Broadening Wedge & Bulls successfully defending the 27.3k Crucial Support.
If Bitcoin can Maintain its Position above this Support level and Experience a Bounce Back, there’s a strong Possibility of a 20% Bullish Rally.… pic.twitter.com/WroafdiwT8
— Captain Faibik (@CryptoFaibik) May 9, 2023
According to a famous crypto trader Captain Faibik, Bitcoin price could be looking to see a 20 percent spike towards $33.7k in the near term. In his latest Bitcoin analysis, Captain Faibik noted that the $27.3K support has held strong in the recent past, thereby assuring a possible bounce back.
“If Bitcoin can Maintain its Position above this Support level and Experience a Bounce Back, there’s a strong possibility of a 20% Bullish Rally,” the analyst insisted.
The analyst noted that the symmetrical triangle is likely to hold in the coming days with a strong rebound.
Low Exchange Balance
The amount of Bitcoin balance on centralized exchanges has hit a five-year ATL, according to on-chain data from Santiment. The withdrawal of Bitcoin from centralized exchanges is a sign of increased self custody, and overall bullish for the crypto market.
From a different perspective, Bitcoin price could be forming a possible head-and-shoulder (H&S) formation in preparation for a market capitulation. Moreover, Bitcoin’s daily RSI shows a falling divergence on a possible triple top.
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Recently, Bitcoin live price, BTC, has been on an upward trend and many investors are taking notice. Despite its recent rise, experts are predicting that the world’s largest digital asset could surge another 20% if this particular scenario plays out.
As with any investment, making predictions can be a risky endeavor, however, industry insiders point to several factors that point to this potential rise. First, of course, is the increased institutional adoption of the currency. In 2020 alone, major companies including PayPal and Square revealed that they are now offering Bitcoin to customers, while big banks such as Goldman Sachs have started to offer Bitcoin trading services. In effect, this has led to greater confidence in Bitcoin and more institutional money flowing into the market.
Secondly, analysts point to the more positive sentiment surrounding Bitcoin and cryptocurrencies in general. This sentiment has been fueled by a number of factors, including the fact that governments have begun to embrace the technology and other digital currencies have seen significant gains. Moreover, the increased demand for Bitcoin has driven up the price of the asset, creating a positive feedback loop.
Finally, Bitcoin is getting ready to enter into its next halving event. During a halving event, the number of new coins entering the market is reduced and the payout to miners is decreased. This means that miners need to compete more vigorously for the available coins and creates a higher difficulty for miners. By reducing the selling pressure and increasing the demand, this event could be a major boon for Bitcoin going forward.
In short, all of these factors could lead to more demand for Bitcoin and its price is likely to reflect this. If this scenario continues to unfold, we could see Bitcoin continue its upward trend and potentially exceed its current level by achieving a 20% jump. While this result is not a guarantee, it is certainly in Bitcoin’s favor and is worth keeping an eye on.
