As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous market cycles and trends that have shaped the global economy. In light of recent events, it appears that Bitcoin is showing signs of stability and potential growth, as evidenced by its 13% price increase in the last week.
Based on information from CoinMarketCap, Bitcoin (BTC) seems to have settled down somewhat in September, with its price increasing by approximately 13% over the past week. Notably, crypto analyst Burak Kesmeci has pointed out a specific factor that might be instrumental in triggering a bull run within the market.
Bitcoin Bulls Dominance Strengthens, Network Address Nears 350,000 Level
On Friday, Kesmeci posted an update suggesting that the daily increase in new Bitcoin addresses serves as a powerful signal for price fluctuations. Regarding the recent surge in price, the analyst pointed out that the number of new Bitcoin addresses has been steadily rising and could soon hit the significant level of 350,000.
Kesmeci points out the crucial significance of 350,000 as the number of new Bitcoin addresses exceeding this level typically signals that bulls are strengthening their market control and the trend is likely to head upwards. Conversely, when the number of new BTC addresses drops below this figure, it may signify a potential price adjustment or the onset of a bearish phase in the market.
In the second scenario, the cryptocurrency analyst warns that if the number of new Bitcoin addresses drops below 250,000, it could signal a return to a bearish market similar to three previous instances over the past six years. This includes the period from $19,000 to $6,000 in 2018, the decline from $64,000 to $30,000 in 2021, and a potential drop from the record high of $74,000 to around $49,000 in 2024.
Lately, the number of new Bitcoin addresses has significantly increased from below 200,000 to over 300,000, an uptick that Kesmeci finds quite noteworthy. If this trend continues and surpasses 350,000, especially after the upcoming US Federal Reserve meeting next week, Bitcoin investors might find themselves in for a particularly rewarding timeframe.
BTC Spot ETF To Threaten Network Growth?
2024 sees one of the most thrilling advancements in the crypto world with the emergence of the Bitcoin spot ETF market. Many believe that these exchange-traded funds will stimulate institutional interest in Bitcoin over time. However, Kesmeci has raised concerns that these ETFs might impede the expansion of the network in the long run.
This is due to the fact that one ETF might contain Bitcoin for numerous investors, each of whom would’ve had to set up separate Bitcoin network addresses if they bought Bitcoin individually. Consequently, there’s a continual demand for new retail investors entering the market, even as ETFs contribute to price increases.
Currently, Bitcoin (BTC) is being traded at approximately $60,395, marking a 4.31% increase in its value over the past day. Conversely, the daily trading volume has seen a decrease of 9.35%, currently standing at around $30.5 billion.
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2024-09-14 16:41