The BTC/USD pair is down by 30% and the drop seem to persist; sellers are in charge
News BTC published a price analysis on BTC against USD. According to the analysis, the trading pair is one of the worst performers during last week’s market. It states that declining adoption levels, together with the candlestick chart data may have an unfavorable effect on spread. This may result to lesser incoming capital.
The article recommends to wait for pullbacks and to hold off from shorting. And sell signals at $5,000 to $5,500 is ideal.
Gains Projected to Reverse the Bear
Gains over the $6,000 mark and a high trading volume are projected to reverse the bear. If this happens, according to the article, the price of BTC will increase to $8,500 in the first quarter of 2019.
Effects of the Market Downturn
A report by Chainalysis notes that transaction volumes handled by major payments services experienced an 80% decline by the end of the third quarter - from 2017’s $427 million to $96 million. Also, 17 cryptocurrency payments platforms observed a slow decrease in crypto transactions.
Bitcoin Scalability and the Lightning Network
Joni Teves, a UBS strategist, states that BTC has to, first of all, be stable in order to qualify as another form of money, but scalability will bring it to wider adoption.
Lightning Network, a second layer blockchain scaling solution, was created to address scalability issues. In spite of the slump, Lightning Network sees an increase in transactions. This week it attained 4,101 nodes (as reported by Reuters) with 12,000 live channels.