By
Chimamanda U. Martha
April 24th, 2024
Bitcoin is making a strong move today hinting at a possible trend reversal as its breaches past the 50-day moving average.
Bitcoin‘s Layer-2 scalability solution – Lightning Network – has attained a new milestone last week. The Bitcoin Lightning capacity has touched a new all-time high with a total of 3,400 BTC locked worth a staggering $141 million.
Bitcoin Lightning Network
The Bitcoin Lightning Network, which facilitates near zero-fee bitcoin payments, has registered solid growth over the last year. The Lightning Network capacity has grown 3x in just a year’s time.
The Bitcoin Lightning Network is an off-chain solution that allows users to make payments at near-zero fees. Launched back in 2018, it specifically aims at solving Bitcoin’s scalability issues. It allows users to lock up a sum of Bitcoin on the Lightning Network.
The Lightning Network handles smaller off-chain payments and upon completion of the transaction, the network sends out the payments to one on-chain transaction. this results in significantly less network congestion and a low gas fee.
Furthermore, some big market players have also started using the Lightning Network at their end. Last month, Block Inc’s Cash App integrated Lightning Network. Block managed to do it by using its own open-source Lightning Development Kit. This helped them in introducing zero-gas fee payments at their end.
Bitcoin Surges Past $42,500
Earlier today, the Bitcoin price made a strong move above $42,500, it 50-day moving average. Wrll, this suggests that if BTC manages to close above these crucial levels, we might be seeing a major trend reversal going ahead. Popular crypto market analyst Lark Davis wrote:
Bitcoin now bumping into resistance at the 50 day MA and the big zone of resistance at $42,500. If we close above these levels then we could see some serious fireworks!
furthermore, the analyst also predicted a major breakout on the RIS chart. He said: “Major break out underway for Bitcoin !!!! RSI breaking out of downtrend in a serious way! Last time this happened we had about 130% price gain. History about to repeat?”
Furthermore, Bloomberg Intelligence has recently published a report showing a bull case scenario for the world’s largest cryptocurrency. The report adds that Bitcoin still holds the potential to hit $100K price levels very soon.
We expect more regulatory ahead this year when it comes to delaing with Bitcoin and other cryptocurrencies.