{"id":126540,"date":"2020-02-27T12:05:28","date_gmt":"2020-02-27T12:05:28","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=126540"},"modified":"2020-02-27T13:14:13","modified_gmt":"2020-02-27T13:14:13","slug":"despite-the-downturn-bitcoin-fundamentals-grow-strong","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/despite-the-downturn-bitcoin-fundamentals-grow-strong\/","title":{"rendered":"Despite the downturn, Bitcoin’s fundamentals are growing stronger"},"content":{"rendered":"

Bitcoin took a significant nosedive<\/a> sending investors into fear, according to the Crypto Fear and Greed Index<\/a>. Despite the commotion in the market, on-chain metrics reveal that BTC\u2019s network is stronger than ever.<\/p>\n

Bitcoin could drop even further<\/h2>\n

Over the past two weeks, Bitcoin entered a bearish trend that has seen its price depreciate over 18 percent. The flagship cryptocurrency went from trading at a high of $10,500 to recently hit a low of $8,555. Although the correction has been quite significant, the carnage may not be over yet.<\/p>\n

As a matter of fact, the support given by the 200-day moving average appears to be weakening. Breaking below this support barrier could trigger a spike in the selling pressure behind Bitcoin. Such a bearish impulse could push its price down to the 100-day moving average.<\/p>\n

This hurdle currently sits around $8,300, which could hold the pioneer cryptocurrency from a further retracement.<\/p>\n

\"Bitcoin
BTC\/USD<\/a> by TradingView<\/figcaption><\/figure>\n

Despite the high probability of a steeper decline, the Bitcoin network continues growing at an exponential rate. Every day, more addresses are created and the number of holders continues rising, according to data from IntoTheBlock<\/a>.<\/p>\n

The network grows at a “hyperbolic” rate<\/h2>\n

The machine learning and statistical modeling firm estimate that there was a total average of 405,440 new addresses created per day over the past week. This outweighs the number of addresses that went zero, which only represents 368,250 addresses per day.<\/p>\n

Bitcoin\u2019s network grew by a whopping 231,000 addresses in the past seven days at a positive ratio with an average of 37,190 daily addresses.<\/p>\n

\"Daily
Daily Active Addresses by IntoTheBlock<\/figcaption><\/figure>\n

The exponential growth rate that the flagship cryptocurrency is going through cannot be easily understood due to human nature\u2019s instinct to look at “things in a linear stance,” according to on-chain analyst Willy Woo<\/a>.<\/p>\n

Woo affirmed<\/a>:<\/p>\n

“If you were to look at where we are on the adoption curve, we are at 1% of the world population holding this asset class. And, if you look at the rate in which that is growing, which is 2x every year\u2026 and 4x on a bull market. If you run those numbers, we are going to have half of the world using [cryptocurrencies] within the next seven years.”<\/p><\/blockquote>\n

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When will #Bitcoin<\/a> reach mass adoption? @woonomic<\/a> pic.twitter.com\/CwSS5PVvZF<\/a><\/p>\n

— Dennis Parker\u26a1\ufe0f (@Xentagz) February 24, 2020<\/a><\/p><\/blockquote>\n