Bitcoin (BTC) price tested resistance at $43,000 on Friday, recovering from declines earlier this week, in a sign of increasing buying pressure after a choppy week. Some of the asset’s on-chain metrics support the thesis of further price gains ahead, although Bitcoin price has been moving broadly sideways for the last two months.
Also read: Bitcoin price scenarios to consider with approaching BTC halving event
Whale transaction count and Network Realized Profit/Loss. Source: Santiment
BTC Social dominance and price. Source: Santiment
Inflows to BTC ETFs for 14 consecutive days. Source: Bloomberg Intelligence
Akash Girimath, technical analyst at FXStreet, notes that Bitcoin price shows no signs of a directional bias in the short-term, the asset is trading around the $43,000 level. Girimath argues that on-chain metrics show clear bullish signs, and that BTC could potentially kick-start a bull run.
Girimath says two scenarios could play out. In the first case, Bitcoin price uptrend could continue after January’s swing low at $38,505. Alternatively, Bitcoin price could correct to the $34,000 level. The analyst notes that traders are expecting a correction that flushes out late long positions and pushes BTC to the $34,000 to $35,000 region. But this correction is highly unlikely, he said.
On the daily timeframe, if Bitcoin price dips into the daily imbalance zone between $41,396 to $40,278, its reaction to the $40,000 region could determine where BTC is headed next. Strong buying pressure has the potential to push Bitcoin to a higher high above $44,000, a moderate buy signal for traders.
BTC/USD 1-day chart
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.