Bitcoin holds firm at $30,000: Evidence of BTC re-accumulation?
- BTC’s value has grown by 91% since its November 2022 price lows.
- As active addresses count begins to climb, BTC’s price might grow further.
As Bitcoin’s [BTC] price consolidates at the $30,000, the ‘mid-point’ of the 2021-22 cycle, on-chain metrics signal that the market trended towards a period of re-accumulation, Glassnode found in its new report.
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Volatility, fluctuations and a bull market
Glassnode assessed the depth of the “bull market corrections” so far this year and compared the same with the previous cycles. The on-chain data provider found that “the peak drawdown in 2023 has been just -18%, which is remarkably shallow compared to all prior cycles.” This, according to Glassnode, suggested that “a relatively strong degree of demand underlies the asset.”’
The report also considered BTC’s recovery from the bear market lows of November 2022, when the leading coin traded for as low as $15,000, and found that its value has since risen by 91%. According to Glassnode, this recovery “carries a remarkable resemblance to the recovery rallies of prior cycles.”
A look at these findings suggested that despite the price volatility and fluctuations experienced so far this year, the BTC market continues to exhibit signs of resilience and strength in the current cycle.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Furthermore, Glassnode noted the impact of Inscriptions on on-chain activity within the Bitcoin network. Inscriptions led to a surge in BTC network activity a few months ago.
Typically, an increase in this metric is seen as a positive signal of growing adoption and a healthy network. However, the presence of inscriptions, which involved significant address re-use and small transfer volumes, requires a more nuanced interpretation.
With inscriptions experiencing a decline, active address momentum has started to increase again in the last few months. According to Glassnode:
“Traditional interpretation would have seen the last 2-3 months as an implied decline in Bitcoin network activity. However, the correct interpretation is that it was simply a product of significant address re-use by inscription traders, and network activity was actually booming, with blocks being packed full.”
It is trite that the steady growth in the count of active addresses on a coin’s network is a precursor to a continued increase in the coin’s value. As long as sentiment remains positive, BTC’s price is expected to grow further.