In the field of digital currency, Bitcoin has always been the focus of much attention. However, recent market volatility has raised questions about Bitcoin’s prospects. Still, a closer look at four of Bitcoin’s key indicators reveals that not all hope is lost. Let’s dig a little deeper and see what lies behind these indicators.

First, let’s focus on Bitcoin’s market performance. The recent violent fluctuations in the price of Bitcoin have made many investors uneasy. However, looking at the long-term trend, the value of Bitcoin still shows strong growth momentum. Over the past few years, Bitcoin's market value has continued to rise, attracting more and more institutional and individual investors. Although market fluctuations are unavoidable, Bitcoin, as a global digital asset, still has huge potential for long-term appreciation.

Second, we need to focus on Bitcoin adoption. With the popularity of digital currencies, more and more businesses and individuals are beginning to accept Bitcoin as a payment method. For example, some well-known multinational companies have begun to accept Bitcoin payments, which provides strong support for the practical application of digital currencies. In addition, some governments have also begun to discuss the issuance of digital currencies, which shows that digital currencies have gradually entered the mainstream financial system.

The third key indicator is Bitcoin’s technical development. As an outstanding representative of blockchain technology, Bitcoin has been continuously improving its technical architecture. With the emergence of second-layer solutions such as the Lightning Network, Bitcoin's transaction speed and cost have been effectively optimized, bringing more possibilities for its application in actual payment scenarios. The continuous advancement of technology will further enhance the sustainability and stability of Bitcoin and lay a solid foundation for its future development.

Finally, we want to focus on Bitcoin’s social impact. As a decentralized digital currency, Bitcoin represents change and innovation in the financial system. In some countries with weaker economies, Bitcoin has become a safe haven asset and payment tool for people. In addition, the emergence of Bitcoin has also promoted the development of financial technology and promoted the vigorous development of the global digital economy. Bitcoin is not just a digital asset, but a force that promotes social progress.

To sum up, despite the frequent fluctuations in the Bitcoin market, not all hopes are dashed based on its four key indicators. As an innovative digital asset, Bitcoin has huge potential and value, and its future development is still worth looking forward to. Let us maintain a rational perspective, seize the opportunity, and jointly witness the brilliant future of Bitcoin.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Bitcoin (BTC) prices briefly fell to $3,700 on March 12, closing at $4,970 that day. As of March 13, the currency price has recovered from the downward trend, closing at $5,563, with a return rate of over 11%, which is very impressive.

Cryptocurrency market daily performance

Recent market turmoil, both in traditional markets and in the cryptocurrency space, has raised questions about Bitcoin’s price evolution and its critical network functionality. Let’s take a look at four key Bitcoin price and network indicators to get a sense of the future of the cryptocurrency market’s largest asset.

The stock-output model remains unchanged

Judging from the stock-to-output model (a Bitcoin price prediction model based on the available circulating supply (stock) and the new output (output)), the actual price of Bitcoin on Thursday was lower than the forecast line, but within the expected threshold.

Bitcoin

This is not the first time that Bitcoin prices have fallen below the 365 DAS price model, as in the past 6 months (mid-November 2018 to mid-May 2019) Bitcoin prices have rebounded in the forecast since then.

Bitcoin from July 2018 to December 2021

In a tweet on March 13
, PlanB, the creator of the stock-to-output model, said that “Bitcoin’s volatility is very good around the model value.” Therefore, according to PlanB, there is no change in the predicted price considering the approach of the next halving cycle. The current 365-day average price model predicts a price of $8,426 at the expected halving time (May 9, 2020).

Bitcoin NVT Signal

Bitcoin’s price was hovering around $5,400 on Sunday, while its actual price on the NTV Signal indicator was $5,596, suggesting the asset was in buy territory following Thursday’s price plunge. Currently, an NTV signal of 49.5.45 indicates oversold conditions.

For traders considering a short-term buy, the model suggests that there are opportunities for quick profits based on current prices and the 200-week average. Considering the 200-day average price is $8,587, Bitcoin shows room for long-term growth, and the upcoming halving event in May also adds a lot of evidence to this bullish view.

Bitcoin NVT Signal

What about computing power?

In terms of computing power, it has been declining since reaching historical levels in March. Computational power is the computing power required to confirm transactions on the Bitcoin blockchain. Since March 11, the index has been on a slight upward trend despite a sharp 50% drop on March 12.

From February 23, 2020 to March 13, 2020

On March 13, the computing power value was close to 110.38E per second, the same level as at the end of February. However, the recent correction in February has not halted the long-term growth trend since the historical hashrate values were set at the beginning of the year.

Increased difficulty usually leads to higher prices

The level of difficulty required for miners to verify the Bitcoin blockchain, that is, has always been the norm and continues to increase. On March 8, despite the recent unfavorable market conditions, falling prices mean increased mining participation and increased difficulty.

Average difficulty from January 2020 to March 13, 2020

Transaction surge on March 12

Bitcoin trading volume spiked on March 12, which is typical when the market experiences significant volatility. On March 13, Bitcoin transaction volume settled in U.S. dollars also saw a surge.
, the number of daily transfers dropped to about 277,000 in late February, and has remained at normal levels since the beginning of the year.

Daily from February 23, 2020 to March 13, 2020

As comments surrounding investor confidence in Bitcoin raise questions, Bitcoin's basic network functionality has shown consistency even as the market as a whole is plagued by turmoil and uncertainty.

Looking ahead, with the market in such panic, capable players may be looking for opportunities to buy at low prices and actively plan for long-term returns.

However, the global spread of the COVID-19 virus may continue to cause short-term liquidity problems in the market and ultimately lead to the emergence of a major bear market.

In addition to analyzing the fundamentals of the Bitcoin network, its shared safe-haven correlation with gold may give investors confidence during the current mid-term crisis, even if it is currently in a downtrend.