Bitcoin: As new entrants climb, is BTC ready for a price hike
- Bitcoin addresses with a balance have been growing since December.
- If Bitcoin flips the resistance at $44,176, the price may hit $50,000.
According to Bitcoin [BTC] research specialist, Axel Adler Jr, the number of new addresses joining the network has increased to a daily average of 428,000.
Adler, in his post, noted that the growth has been that day since the 17th of November. He also added that the rise was much higher than it was for most of 2023.
The number of new addresses in the network is at 428K per day. This is the average value for the last year. These metrics have been growing since December 17th, when the network experienced a local minimum.
Will these addresses be sufficient for the price to rise? Answer: Yes. pic.twitter.com/RX7LzM6PMP
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) January 4, 2024
Will BTC rise as demand pumps?
A growth in new addresses means that more participants are having their first transaction and a balance. It also implies that demand for Bitcoin is increasing.
Like Adler, AMBCrypto also believes that the surge in demand could lead to a higher price for BTC.
However, it is uncertain when the spike will come. Investors should keep an eye on the price action in the short term as several catalysts could impact it.
At press time, BTC changed hands at $43,626. This denoted a quick recovery for the coin after the crash that happened on the 3rd of January.
In terms of active addresses, AMBCrypto discovered that Bitcoin started the year slowly at 765,000. But on the 4th of January, the 24-hour active addresses hit 1.08 million, Santiment data revealed.
Active addresses help to indicate the rate of user activity on the blockchain.
Despite falling to 958,000 at press time, the jump implied that new wallets were not the only ones transacting Bitcoin. Instead, existing users have also increased their interaction.
Furthermore, the rise in overall activity could be linked to the anticipation around a possible spot Bitcoin ETF approval. Recently, there has been debate about the U.S. SEC’s position on the ETF filings.
However, most opinions from reliable sources tilt toward a positive outcome.
Predictions say “Bitcoin to the moon”
As a result, predictions have appeared with many noting that Bitcoin could head beyond $50,000. Some others think the coin price might go higher once the ETFs get the green light. One of them is Arthur Hayes, co-founder of crypto exchange BitMEX.
In a blog post dated the 4th of January, Hayes opined that Bitcoin could surpass the previous All-Time High (ATH). He, however, mentioned that BTC could experience a notable drawdown afterward. He noted that:
“I could easily see a 30% to 40% correction due to a dollar liquidity rug pull. This is why I cannot buy Bitcoin until these March decision dates have passed.”
From a technical perspective, BTC is in a dicey situation that could make or mar the price. As of this writing, the 4-hour chart showed that there was a notable resistance at $44,176 that has kept the coin from retesting $45,000.
If Bitcoin breaches the resistance and the ETFs get a go-ahead, then the price may rise in the $50,000 direction. It is also possible that the value rises higher. However, if the coin does not break the said region, a downward move could be next.
Read Bitcoin’s [BTC] Price Prediction 2024-2025
Between both options, the former seemed likely. This was because of the Relative Strength Index (RSI). At the time of writing, the RSI was 52.57, indicating a return of the buying momentum.
If the momentum continues, then it would be easy to break toward $45,000 for a start.