Bitcoin Price Stalls but Recovery Continues
The price of Bitcoin (BTC) stalled at a key level today as the recovery from the Thanksgiving sell off continued.
At the time of writing, the price of Bitcoin stood at $56,613 with a slight drop of 0.67% in the last 24 hours. The price of Bitcoin saw a significant drop over the weekend falling from a high of $59,400 on Thursday, November 25th, to $53,757 by Sunday, November 28th, demonstrating that the price of Bitcoin is far from stable.
With the end of November just hours away the general synopsis of the Plan B stock to flow model appears to be in serious doubt. In recent months the well-known scarcity and demand curve has shown to be eerily accurate by correctly predicting both August and September monthly close and just 3% out in October.
However, the model shows November with a predicted closing price of $98,000 which would require a massive daily close in the next 24 hours. Watch this space.
Regardless of the weak price action of Bitcoin in the last few days, professional traders remain bullish on the long-term price. Yesterday, infamous investment group MicroStrategy announced they had recently purchased 7,002 Bitcoins at an average price of $59,187 clearly demonstrating their confidence in the long-term price stability of Bitcoin. The $414 million purchase was achieved through the sale of company shares through October and November.
Average Transaction Fee Continues to Fall
Away from price action and technical analysis, the Bitcoin network continues to grow and appears to be in great shape. Recent reports and data show that for every $95,000 processed by the network the average fee comes to just $1. The calculation was achieved by dividing the mean transaction volume by the fees over a selected period of time (in this case seven days) and was provided by on-chain analyst Dylan LeClair using data provided by Glasnode.
Bitcoin fees have continued to fall since the successful adoption of the layer 2 payment protocol ‘Lightning Network’ in 2020 whose sole aim is to increase speed and reduce cost. Indeed, the decision by the government of El Salvador to make Bitcoin legal tender was based on the integration of a Lightning Network protocol into its official wallet.
Author: Mark Harridge
Mark Harridge first came across Bitcoin and began to use its peer-to-peer payment network in mid to late-2011. He quickly understood that this technology would change the world. Mark is passionate about crypto adoption, from a macro economic and institutional perspective, and the numerous factors that fuel the relentless march towards individual self sovereignty and the decentralised society of the future.