If Bitcoin closes the next two weeks above $ 10,000, it will mark a new fact in its price history
Last week, with Bitcoin, the world’s largest cryptocurrency, falling close to $ 10,000, the markets became tense. After nearly a month over $ 10,000, with most of it pushing and pulling against the $ 12,000 mark, a massive 13 percent drop in two days was a cause for concern. But now, a week after the crash, did it really hurt holders’ hopes or is it just something to be put aside?
According to a recent report by Intel Chainalysis Market, the sharp drop in prices last week did not change the sentiment of holders. The report stated that, in the past, when prices dropped dramatically, sending Bitcoins rose between 5% and 25%. Here, ‘sent’ Bitcoin refers to the cryptocurrency being sent to exchanges with the aim of settling in fiat currency, stablecoins or altcoins.
Two prominent events that saw higher Bitcoin shipping rates were the end of late 2017, when the price rose to close to $ 20,000 and then plummeted, the drop to $ 4,000 in the last quarter of 2018 and the March 2020 break when the price dropped to less than $ 3,800. With that price context, the fall of last week had no similar effect on Bitcoin sent to exchanges.
Bitcoin sent per week to exchanges | Source: Chainalysis Markets
A similar case can be made for Ethereum. The price fluctuation of altcoin has been much more pronounced than that of Bitcoin, with the first rising to a two-year high last month, before the recent correction. It can be said that the Ethereum markets saw “some panic” with 4.7 million ETH sent to exchanges with a loss of 5 to 25 percent, a 10-fold increase over the previous week. The biggest losses were contained for just 78,000 ETH.
Looking at the Bitcoin data against Ethereum, the report said:
“So, as with Bitcoin, Ethereum holders don’t seem to think that prices will fall further.”
Going back to Bitcoin, what is the big picture? Bitcoin is set to end another week of trading above $ 10,000, representing a 7th consecutive five-digit week. In the history of Bitcoin price, if we go for it, the cryptocurrency has never spent more than 8 weeks above $ 10,000.
Between June and August 2019, the price was above $ 10,000 for 11 weeks, but that was with a slight drop in late July, and from November 2017 to January 2018, only seven full weeks saw the price above $ 10,000 before the bear market started.
Looking at this data, if Bitcoin closes the next two weeks above $ 10,000, it will mark a new fact in its price history. With holders continuing to stagger, this trend is likely to continue and the price is likely to remain.