⚠️CONGESTION ON THE BITCOIN NETWORK⚠️
Hello TradingView, today I'm going to share with you a little bit of my opinion about BITCOIN network congestion as well as the possible impacts on asset prices.
To begin with, some classic headlines after this weekend were:
"Bitcoin drops 3% after “congestion” and suspension of withdrawals on Binance"
But many claim that what caused all this was the Ordinals protocol, which allows the storage of NFTs on the BITCOIN blockchain.
The cryptocurrency market dawned red this Monday, still shaken by a tense weekend caused by congestion on the Bitcoin (BTC) network and the momentary suspension of withdrawals on Binance, the largest exchange in the world by trading volume.
The slowness in the Bitcoin network is attributed to the growing popularity of the Ordinals protocol, which allows storage of non-fungible tokens (NFTs) in the cryptocurrency system. The project led to “massive increases in network fees and congestion,” Hayden Hughes, co-founder of social trading platform Alpha Impact, told Bloomberg.
What are the possible impacts of congestion on Bitcoin?
The biggest impact can be felt in the pocket of those who use the network. Especially when we talk about smaller transactions, after all, to transact in the first layer of the network, fees are much more expensive, thus making lower value transactions unfeasible.
Miners will see this impact positively. That's because, in addition to receiving part of the new bitcoins issued on the market, miners also receive part of the fees paid as a form of economic incentive... And yes, for the first time thanks to congestion we observe the first block that paid more in fees to the miner than the reward itself. Fees received were 6.75BTC vs 6.25BTC reward for being mined.
Now a positive point is that the current stress test can be important to imagine a large-scale adoption of BITCOIN and this will probably make the network stronger for the next battles that will arise!
Some people also see a positive impact on prices as: The demand for, and struggle for, space can also inflate the price of bitcoin. The reason is that, since the “tip” to the validators is paid in satoshis, the smallest unit of bitcoin, and the issuance is controlled, there may be a supply shock within the network itself, which in my opinion is a little less likely because many brokerages stopped withdrawals which pushes the asset price down.
OK, Now let's go to the charts, these are my target zones the first reading and also more classic and objective would be a test on the VAH combined with a VWAP anchored from the bottom of the market, so the ranges from U$25,110 to U$23,770 are relevant points for realization of SHORTs.
Now thinking about Elliott Waves,with the chart
BTCUSDT
I believe in these possibilities here.
Context 1- ABC followed by 5-3-5 combo
This first correction can evolve into this variable here, if it is a longer wave in time!
Context 2 - Flat ABC and the market should continue rising strongly unless the new impulse fails and gives rise to an X wave, thus building a WXY combo.
But my main score is this
To begin with, some classic headlines after this weekend were:
"Bitcoin drops 3% after “congestion” and suspension of withdrawals on Binance"
But many claim that what caused all this was the Ordinals protocol, which allows the storage of NFTs on the BITCOIN blockchain.
The cryptocurrency market dawned red this Monday, still shaken by a tense weekend caused by congestion on the Bitcoin (BTC) network and the momentary suspension of withdrawals on Binance, the largest exchange in the world by trading volume.
The slowness in the Bitcoin network is attributed to the growing popularity of the Ordinals protocol, which allows storage of non-fungible tokens (NFTs) in the cryptocurrency system. The project led to “massive increases in network fees and congestion,” Hayden Hughes, co-founder of social trading platform Alpha Impact, told Bloomberg.
What are the possible impacts of congestion on Bitcoin?
The biggest impact can be felt in the pocket of those who use the network. Especially when we talk about smaller transactions, after all, to transact in the first layer of the network, fees are much more expensive, thus making lower value transactions unfeasible.
Miners will see this impact positively. That's because, in addition to receiving part of the new bitcoins issued on the market, miners also receive part of the fees paid as a form of economic incentive... And yes, for the first time thanks to congestion we observe the first block that paid more in fees to the miner than the reward itself. Fees received were 6.75BTC vs 6.25BTC reward for being mined.
Now a positive point is that the current stress test can be important to imagine a large-scale adoption of BITCOIN and this will probably make the network stronger for the next battles that will arise!
Some people also see a positive impact on prices as: The demand for, and struggle for, space can also inflate the price of bitcoin. The reason is that, since the “tip” to the validators is paid in satoshis, the smallest unit of bitcoin, and the issuance is controlled, there may be a supply shock within the network itself, which in my opinion is a little less likely because many brokerages stopped withdrawals which pushes the asset price down.
OK, Now let's go to the charts, these are my target zones the first reading and also more classic and objective would be a test on the VAH combined with a VWAP anchored from the bottom of the market, so the ranges from U$25,110 to U$23,770 are relevant points for realization of SHORTs.
Now thinking about Elliott Waves,with the chart
BTCUSDT I believe in these possibilities here.
Context 1- ABC followed by 5-3-5 combo
This first correction can evolve into this variable here, if it is a longer wave in time!
Context 2 - Flat ABC and the market should continue rising strongly unless the new impulse fails and gives rise to an X wave, thus building a WXY combo.
But my main score is this
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Comunidade Free
t.me/powerinc
Site 🌍 powerinc.trade
🔷Abra sua conta na BingX e apoie meu trabalho!
bingx.com/partner/powerinc
Na BingX, você pode operar criptomoedas diretamente pelo TradingView✅
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