It has been a rather quiet week for Bitcoin so far. Despite a very promising start to May of 2019, the uptrend has ground to a halt. While that is not entirely unexpected, a lot of traders and speculators are growing antsy once again. There are several reasons as to why the Bitcoin price uptrend has stalled. How much of a role these all play in the big picture, is up for debate.
The Bitcoin Mempool is Filling up Again
There are always some things going on with Bitcoin which most people will not notice immediately. As has been the case for some time now, there will be periods when the BTC transaction queue fills up quickly and confirmations will take longer to materialize. While this problem can usually be solved by simply paying a higher transaction fee, it is a far cry from an ideal solution. After all, no one wants to pay more fees to move BTC across the network. When the unconfirmed transactions numbers rise, the Bitcoin price usually seems to enter sideways trading for a while. It is unclear if these events effectively correlate, though.
When looking at the weekly chart for the Bitcoin mempool, it is evident five key spikes can be noted. The last one materialized on the evening of May 20, yet it seems most of the queue was eliminated just a few hours later. That situation ultimately yielded a second spike, which further confirms there are still plenty of transactions waiting for confirmations. This problem was also present last week, when the number of unconfirmed transactions spiked well above 70,000 multiple times. Despite things settling down in the days after, it is evident the network is struggling to keep up with the demand.
Higher Fees Don’t Make Anyone Happy
When it comes to dealing with Bitcoin transaction fees, there will always be very conflicting opinions. Although low-fee TXes will always go through eventually, it seems the average fee has spiked five times in the past seven days. Not a promising sign, albeit this is somewhat to be expected under the current technical conditions. Bitcoin isn’t exactly suited to handle tens of thousands of transactions per hour without issues, albeit that situation may change in the future. For now, it is something users need to contend with and try to make the best of the situation. Either that or switch to altcoins for faster transaction speeds.
Novogratz Destroys Altcoin Season Expectations
Most cryptocurrency users are familiar with the name Michael Novogratz. He is a well-known Bitcoin price speculator, and one who still has high hopes for the world’s leading cryptocurrency throughout 2019. Interestingly enough, he also doesn’t believe there will be an altcoin season in 2019. A rather remarkable statement, especially since so many traders expect altcoins to pop off very soon. So far, there haven’t been any major surges outside of the market cap top 30.
Not this time. Market getting smarter. $btc will outperform.
— Michael Novogratz (@novogratz) May 19, 2019
While this statement should primarily affect altcoins, it could also explain why the Bitcoin price trend has stalled. Depending on how one looks at this statement, one could argue the next Bitcoin bull run is just around the corner. Assuming that is the case, nearly everyone seems to be holding their breath, which results in a status quo in the price department more often than not. That wouldn’t explain why every recent price push has been shot down pretty quickly, albeit speculators are making some good money off flipping Bitcoin on such a regular basis.
VanEck SolidX Bitcoin ETF Delayed Again
Bitcoin enthusiasts and traders should get used to these developments by now. Over the past few years, the SEC has either shot down all Bitcoin ETFs or delayed the decision-making process numerous times. The final outcome is always the same, however, as there is no Bitcoin ETF on the market. Nor may there be for quite some time to come. One also has to wonder if this industry really needs such trading vehicles to attract more players. In its most recent communication, the SEC confirmed additional analysis may be required, albeit that is not necessarily a positive development.
Interestingly enough, the SEC is seeking comments on how the general public perceives this trading vehicle. That in itself shows they are not closing the lid on this product immediately, but it may not necessarily yield an approval either. It would appear a new “verdict” will be rendered in five weeks from the day the notice was made public. That means this ETF will be either approved or rejected by late June of 2019. At the same time, there may be further delays as far as this decision is concerned as well. The tug-of-war involving Bitcoin ETFs is far from over at this point, that much is evident.
Bitcoin Price Correction is Still Ongoing
As mentioned a few days ago, there are interesting parallels between the Bitcoin price surges of 2017 and 2019. As such, it seems plausible to assume BTC is still in its first of potentially five correction waves. While no one knows exactly how long this wave could last, it may take another few days until a new high for 2019 is reached in a convincing manner. Every pullback to a more normal level is healthy for financial markets and cryptocurrencies are no exception in this regard.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency.
