Key facts:
Its issuance and the increase in users keep bitcoin healthy, says Rodríguez.
Rodríguez mentioned that this is a good time to buy bitcoin.
What is happening to bitcoin (BTC) now that the cryptocurrency is in the midst of a bear market? In the eyes of Colombian analyst Juan Rodríguez, the “health” of bitcoin is intact despite this period of correction. And the network analysis data backs it up.
During his participation in the sixth edition of the Blockchain Summit LatamIn Panama, Rodríguez assured that the data of the Bitcoin network show very positive signs in the long term. In particular, he referred to transaction data, adoption, users or active addresses.
Referring to the historical behavior of the cryptocurrency, Rodríguez assured that until now there are certain patterns that have been constant and always on the rise. Especially in terms of user demand for using and accumulating BTC.
This, added to the monetary policy of Bitcoin, generates a clash between the decreasing supply and a growing demand. A situation that, until now, has generated a sustained increase in the price of bitcoin over timebeyond its downward correction periods.
For Rodriguez, the halving it has a slight impact on the price of bitcoin and as time goes by, this mechanism loses influence. Especially, because each time it happens, it is closer to reaching the total number of bitcoins that can be issued. And that is where the intersection with demand and user growth becomes key.
The current price of bitcoin is a buying opportunity
In another dimension of the analysis, Juan Rodríguez spoke about the average purchase prices of institutions and other investors. These prices, he argued, are usually good references when planning purchases.
With bitcoin hovering around $20,000 at the time of writing this article (and while Rodríguez was giving his talk in Panama), the cryptocurrency is below the average purchase price of savers (those who hold their BTC for the long term).
The best area to buy is when we are below the average price at which we have all bought. It’s a logical thing.
Juan Rodríguez, market analyst focused on bitcoin.
Finally, the analyst assured that there could even be a possibility of buying bitcoin at even lower prices. According to his estimates, could go as low as $14,400, although “it’s always a good time to buy bitcoin”sentenced.