Bitcoin’s active address count hits 9-month highs, but BTC may still be “toast” 🚨 This article is 4 years old...
Bitcoin’s active address count hits 9-month highs, but BTC may still be “toast”
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Updated: Apr. 21, 2020 at 3:22 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Bitcoin has seen some incredible fundamental growth in recent times, with network activity rocketing throughout the year while the crypto sees relatively strong price action in the face of immense global economic turbulence.
Another fundamental factor that has shown significant signs of growth throughout 2019 is BTC’s active address count, which just recently set fresh 9-month highs.
In spite of this fundamental growth, analysts are still cautious about Bitcoin’s price action, with one prominent trader noting that the benchmark cryptocurrency could be “toast” as it taps key resistance and continues following the lead of the stock market.
Bitcoin continues consolidating as analysts point to technical weakness
At the time of writing, Bitcoin is trading down marginally at its current price of $7,230, which is around the level at which it has been trading at in the time following its rapid rise past its previous resistance at $7,200.
The quiet price action seen throughout this past weekend wasn’t a surprise to investors, as BTC has established a trend of trading sideways on weekends due to the traditional markets being closed.
Analysts still believe that Bitcoin’s close correlation to the traditional markets remains a key point of weakness for the crypto, which also comes as it flashes some signs of technical weakness – according to Cantering Clark, a popular analyst on Twitter.
“I think BTC is toasted right now, but it is the weekend. Should be interesting to see how the [S&P 500 future market] opens and how [Bitcoin] responds. Failed auction and hold of previous HTF range that is now acting as resistance.”
BTC active address count sets 9-month highs as fundamental strength grows
Bitcoin’s fundamental strength offers a stark contrast to its technical weakness.
One factor that offers insight into this strength is its rise in weekly active addresses – which just hit fresh 9-month highs today.
Josh Olszewicz – another well-respected cryptocurrency analyst – spoke about this occurrence in a recent tweet while pointing to a chart with data from Coin Metrics.
“BTC weekly active addresses at 9-month highs.”
The uptrend seen on the above chart elucidates a trend of growing market participation rates amongst investors and traders.
This phenomenon may stem in part from investors anticipating volatility that could come about as a result of the cryptocurrency’s upcoming mining rewards halving event, which has historically coincided closely with Bitcoin making large price movements in both directions.
Bitcoin Market Data
At the time of press 3:22 am UTC on Apr. 21, 2020, Bitcoin is ranked #1 by market cap and the price is down 4.14% over the past 24 hours. Bitcoin has a market capitalization of $126.81 billion with a 24-hour trading volume of $37.65 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of press 3:22 am UTC on Apr. 21, 2020, the total crypto market is valued at at $199.35 billion with a 24-hour volume of $146.23 billion. Bitcoin dominance is currently at 63.58%. Learn more about the crypto market ›
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
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Coin Metrics is a leading provider of crypto asset market and network data.
