- BTC saw a surge in new addresses and a decline in exchange reserves.
- Despite weekend corrections, BTC attempted a comeback with modest gains on the daily timeframe chart.
In recent weeks, Bitcoin [BTC] embarked on an exhilarating price run, reigniting hopes that the king coin would surge into the illustrious $30,000 range. Alas, the weekend brought with it some necessary corrections that subdued the bullish mood.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Yet, despite the apparent downturn, certain metrics pointed to this as nothing more than a fleeting obstacle in the grand scheme.
Bitcoin sees an influx of new addresses
Did the recent dip in Bitcoin’s value on 1- 2 April deter potential investors from entering the market? It seems not. Despite the temporary setback, data from Glassnode indicated that new investors continued to flock toward the cryptocurrency.
The chart showed a substantial increase in new addresses joining the network, indicating growing interest and participation. As of 2 April, per Glassnode, 471,000 new addresses had joined the network.
The surge in new addresses joining the Bitcoin network will likely positively affect BTC’s price movement. As more investors open new addresses, the coin’s demand will increase, which could drive up prices. Furthermore, any minor drop in the price of BTC may attract even more new investors looking to take advantage of the dip, thereby boosting the network’s number of addresses.
Exchange reserve declines
Although one metric showed an increase, another metric indicated a decline. Rather than being negative, it was positive for the cryptocurrency’s price movement. Based on data from CryptoQuant, there has been a decrease in BTC’s exchange reserve. The chart showed approximately 46,000 BTC, worth around $1.24 billion, left crypto exchange wallets in the last ten days.
The decline in the exchange reserve suggested that investors were moving their BTC off exchanges, possibly to hold for the long term, which will reduce the available supply of BTC on exchanges. As the supply of BTC on exchanges declines, it can create a supply and demand imbalance, driving up the cryptocurrency’s price.
Bitcoin dusts off weekend lossed
As of this writing, Bitcoin was attempting a comeback, as evidenced by the daily timeframe chart. While there was a slight decline in the last two days, at less than 1%, the press trading period showed a modest gain. BTC was trading at around $28,300, reflecting a hopeful sign for investors. Furthermore, the Relative Strength Index (RSI) indicated a strong bull trend, with the line above 60.
How much are 1,10,100 BTCs worth today?
The recent growth in new addresses and the decline in BTC exchange reserves could be signs of a price breakout. The influx of new addresses suggests an increasing interest in BTC and a growing demand for the coins.
Also, the decline in exchange reserves may imply that investors are holding on to their BTC and possibly anticipating a rise in value. These factors, and a strong RSI indicating a bull trend, may indicate that BTC is primed for a price surge.