- According to Timothy Peterson, 25% of Bitcoin users have fled the network since Tesla stopped accepting BTC for car payments
- Elon’s tweet making the announcement has changed Bitcoin’s fundamentals
- Bitcoin’s network size is down 45% from its peak value in mid-April
- Bitcoin is staring at a death cross on the daily chart
Bitcoin and Crypto analyst, Timothy Peterson of Cane Island Alternative Advisors, estimates that 25% of Bitcoin users have fled the network since Tesla stopped accepting BTC for car payments. According to his analysis, Elon Musk’s Tweet announcing the decision to halt Bitcoin payments changed the fundamentals of BTC.
His analysis on the impact of Tesla stopping Bitcoin payments can be found below alongside a chart demonstrating the decision’s impact on the BTC network.
Musk’s May 12 bitcoin tweet has affected fundamentals. I estimate that 25% of bitcoin users have fled since Tesla‘s decision to stop accepting $BTC. Network size is down 45% from the 15 Apr high. Yesterday, Active Addresses hit lowest value since Oct 2020.
Bitcoin is Staring at a Death Cross on the Daily Chart
Bitcoin’s network shrinking by 45% is in tandem with its market pullback that saw it retest $30k in late May. At the time of writing, Bitcoin is trading at $35,900 having failed to recapture the 200-day moving average for close to three weeks.
It is with this price action that Bitcoin and crypto analyst, Rekt Capital, has warned of a pending death cross in the weeks to follow as highlighted in the following screenshot of a recent tweet.
A Death Cross Confirms a Bear Market for Any Asset
A death cross occurs when the 50-day moving average crosses the 200-day moving average from the top. This event is usually a confirmation of a bear trend for any tradable asset. In the case of Bitcoin, the death cross is about to occur on the daily BTC/USDT chart as demonstrated below.