Seasonal Strength
Disclaimer: Your capital is at risk. This is not investment advice.
ByteFolio Issue 126;
The big rally is coming, so say the tea leaves. It ought to be Bitcoin first and the altcoins later. The Bitcoin price has rallied in preparation for a breakout, yet there’s always that chance of a false dawn. The network has recovered to $52 billion of transaction value each week, compared to $40 billion at the summer low and $90 billion back in March. Things are picking up, albeit slowly.
Bitcoin Network Value
In 2020, the network was settled at around $16 billion per week of on-chain transaction activity before the monument breakout. It stalled at $20k, the 2017 all-time high, for a few weeks in November before surging to $40k in January. It was one hell of a move, and after four long years, the setup is here again.
Bitcoin Network Value – 2020 Breakout
The network is stable after the fourth Bitcoin halving in April (the 2020 halving was in May). The chart is looking better, and investors are steadily accumulating. Maybe a falling dollar will help too.
A Weak Dollar Can Boost Bitcoin
Things are improving for altcoins as well. The red skies have practically disappeared, meaning that few altcoins are still in a bear market. In fact, the majority (light blue to blue) have a ByteTrend score of 3 or better in USD, which means the outlook is much improved.
The Crypto Market Is Strengthening in USD
