Despite the enormous on-chain strength: External forces are preventing Bitcoin from rising

Bitcoin has shown signs of tremendous fundamental strength over the past few weeks and months, little affected by the turbulent price movements in the first half of 2020. The slow transition of the cryptocurrency into the bull regime of a single on-chain indicator makes this clear and shows that the network health, liquidity and investor sentiment of the benchmark cryptocurrency have all seen positive growth.

 

Fundamental growth followed

Although Bitcoin’s price development typically follows its fundamental growth, it now appears that “external forces” could stop any potential upward trend.A research firm notes that these forces could include uncertainty about the multi-month consolidation phase of Bitcoin and uncertainty about Bitcoin’s status as a “risk on” or “risk off” investment.

 

Bitcoin’s fundamental strength is increasing despite a lack of price promotions

In the past few months, Bitcoin has been caught within a broad trading range between $ 9,000 and $ 10,000.Both buyers and sellers have been stuck since the beginning of May – and any attempt to break out of this range has proven to be fleeting. This consolidation has led to cryptocurrency volatility reaching levels that have not been observed in over a year.According to the analysis platform Glassnode, the cryptocurrency is experiencing enormous fundamental growth despite the consolidation phase. The platform’s “Glass Node Compass” indicator indicates that BTC has been steadily approaching the bullish “Regime 1” portion of the compass in recent weeks.