The usage restrictions of Bitcoin (BTC), which are largely due to their architecture, have been repeatedly questioned. The king coin used to be used primarily as a store of value, but thanks to recent improvements, it’s now used in other ways and through other channels. Recently, Cash App announced that users can now send and receive Bitcoin lightning network. Bitcoin Product Lead for Cash App Michael Rihani tweeted the news, and the platform’s help page confirmed this.
Here is AMBCrypto Bitcoin (BTC) Price Prediction for 2022-2023
The new BTC utility in Cash App
Cash App had previously provided Lightning Network compatibility for Bitcoin transactions, but only to the extent that customers could pay bills by scanning Lightning QR codes. Unless otherwise noted, all Cash App transactions using QR codes would now default to Lightning. Users could also receive bitcoin instead of just sending it. This new service has a weekly cap of $999 and is still restricted in certain countries.
Source: Coinstats
The Lightning Network helps as a “second layer solution”. Bitcoin Transactions are completed faster, allowing the cryptocurrency to be used for more frequent, smaller purchases.
How far has BTC come?
Twelve years ago, when Bitcoin was much lower in value, an early adopter spent 10,000 BTC on two pizzas, starting a tradition that has come to be known as Bitcoin Bitcoin Pizza Tag. How far the BTC utility has progressed and a glimpse of what else might be out there can be seen in recent advances such as the Cash App announcement.
Although BTC’s price movements have not been happy over the past few months, the cryptocurrency is still trading near $20,000 on the charts.
Hooray to 20,000, but for how much longer?
Bitcoin finally broke the $20,000 mark recently after many evasions, much to the delight of BTC holders. Examining the price action over a 6-hour period confirmed that the uptrend is still in force. The coin could be seen trading between $18,000 and $19,000 before its sustained burst. As a result of repeated testing, a support area between $19,066 and $18,617 can also be identified.
Below the price action, the short moving average (yellow line) could also be seen as support. Additionally, a possible cross over the long MA (blue line) on the 6-hour timeframe has been indicated by diffraction. The blue line that originally acted as resistance could be seen as support for the new price pattern forming.
Source: BTC/USD, TradingView
However, the price of BTC could drop to test the previous support level before confirming that the uptrend will continue. If this level is successfully tested, the asset will duly start an uptrend.
Are holders leaving the exchange?
Based on Glassnode data, it can also be argued that the percentage of BTC held on exchanges has been declining year-to-date. This implies that bitcoin holders have gradually removed their holdings from exchanges, a sign that they are reluctant to sell.
Source: Glassnode
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