Bitcoin Recovery Stalls as Transaction Fee Hits All-time High
Trading around $55,500 Bitcoin (BTC) has been trading in a tight range over the past few days, which suggests buyers are losing strength amidst increase in transaction fee which hits all-time high.
The recovery from the April 17 sell-off appears weak with a cluster of resistance levels from $56,000-$59,000. The cryptocurrency was trading around $55,000 Wednesday noon.
Trading data shows that the leading digital asset broke its uptrend since March on the four-hour chart and failed to reverse a series of lower price highs since April 1.
Crypto analysts however said support is seen around the April 17 selloff low just below $52,000.
But the coin relative strength index (RSI) on the four-hour chart registered an oversold reading during the weekend selloff and is now neutral.
BTC is back in a consolidation phase that began around February. Since then, price rallies have been limited around the $60,000 resistance zone with frequent drawdowns of roughly 15%-20%.
Meanwhile, on April 21, Bitcoin network fees touched an all-time high according to a number of transaction fee aggregators.
The average Bitcoin transaction fee is settled at approximately $59.88, with the median fee coming around at $26.44 per transfer.
Crypto analysts explained that cost to send a bitcoin (BTC) transaction has never been higher in terms of average fees.
However, in terms of the median value, charts show median fees are nearing an all-time high, but are not quite there yet.
The average fee rate touched an all-time high of around $59.88 per transaction on Tuesday evening.
Blockchain.com’s “mempool transaction count,” which shows the total number of unconfirmed transactions in the mempool, is around 114,000 transactions waiting in the backlog.
Read Also: Bitcoin Rally After Falling 8% Amidst Sell-offs
BTC fees have been growing higher as the price per coin started swelling, but network fees really started accelerating northbound after the hashrate dropped and market carnage that took place this past weekend.
Bitcoin Recovery Stalls as Transaction Fee Hits All-time High
