Bitcoin
Bitcoin: New user influx raises hope amid sluggish price trend
The network growth that Bitcoin is currently experiencing might be an indication of a renewed interest in the asset. Could this translate to growth for BTC?
- New Bitcoin addresses have hit almost 600,000 as new accounts spiked.
- BTC was on its third day of decline as it stayed below $30,000.
The Bitcoin [BTC] price has been experiencing difficulties in recent weeks. However, during this struggle, new addresses have consistently appeared on the platform. This raises the question of what implications this phenomenon could have for BTC, despite its sluggish price trend.
How much are 1,10,100 BTCs worth today
New users join the Bitcoin network
Recently, Bitcoin has observed a notable uptrend in new addresses. Based on Glassnode’s new address metrics, there has been significant growth in August. The analysis of the chart revealed a surge that began around 4 August.
As of this writing, the number of new addresses exceeded 588,000. This marked the second-highest influx of new addresses in almost five months, with over 600,000 recorded on 30 July as the highest.
Source: Glassnode
The data indicated a noteworthy divergence between the Bitcoin price and the network growth. However, this divergence was viewed positively since it suggested the possibility of a strong price surge due to increased demand from the newly created addresses.
This trend may imply a potential boost in Bitcoin’s value as more users enter the network, indicating a growing interest in the cryptocurrency.
Bitcoin active addresses show positive signs
The analysis of Bitcoin’s 30-day active addresses indicated a stable activity level. The chart displayed a minor uptrend around June, reaching approximately 18 million active addresses. Since then, the number has been consistently maintained, with around 18.2 million active addresses recorded as of this writing.
Source: Santiment
In addition, the daily active addresses for Bitcoin have been showing promising figures. The average daily active address count has been around 900,000; as of this writing, it was over 400,000.
The data suggested that Bitcoin’s user activity has been steady and relatively robust. This consistent level of engagement could be viewed positively as it reflected continued interest in and utilization of the cryptocurrency.
BTC continues negative trends
On a daily timeframe chart, Bitcoin has persisted in a negative trend for three consecutive days. However, it’s worth noting that the decline on each of these days has been relatively modest, staying below 1%. As of this writing, Bitcoin’s trading price hovered around $29,400, with a decline of less than 1%.
Source: TradingView
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Furthermore, the continuous downtrend has resulted in a significant shift in the short Moving Average (yellow line) from supporting to acting as resistance at approximately $30,000.
This shift indicates a change in market sentiment, as the previous support level has become a significant barrier to upward price movements.
