Bitcoin (BTC) price recovers strongly to break above the $22,000 level, signaling rising sentiment among traders. Interestingly, the recent BTC price rally led to a massive increase in the number of daily addresses. The weekly average is nearly 410,000 addresses. A further increase in weekly average addresses to over 415,000 will confirm bull’s take over.
Bitcoin (BTC) Price Awaits Bulls Take Over
As Bitcoin price continues its bear market rally, the question that remains is whether BTC price has bottomed or not. Historically, September has not been a great month for Bitcoin and volatility is also rising amid the CPI data that will decide a 50 or 75 bps rate hike by the Fed on September 21. Further, Ethereum Merge this week is also impacting the Bitcoin network activity.
Crypto analyst Ali Martinez in a tweet on September 12 said “the bottom could be in!” Bitcoin records a rising number of daily addresses, with the weekly average hitting over 410,000 addresses. If the number of average weekly addresses jumps over 415,000, it will confirm a bullish outlook. Thus, BTC bulls may take over from bears.
Bitcoin Average Weekly Addresses. Source: Glassnode
“The number of new daily BTC addresses on the network appears to be increasing rapidly, with the weekly average hovering around 410,000 addresses. A sustained move above 415,000 BTC addresses could confirm the optimistic outlook.”
The 7d moving average chart indicates the number of new addresses jumped to mid-June levels. The previous high is near 415,000. Thus, a rise over 415,000 is significant to confirm a bullish rally.
Furthermore, according to the on-chain platform Santiment, Bitcoin’s Ratio of Transactions in Profit/Loss data is at its highest level since March. It indicates an increase in profits as traders jumped to trade again amid the BTC bounce.
Bitcoin Ratio of Transactions in Profit/Loss. Source: Santiment
“BTC‘s ratio of transactions in profit vs. loss is at its highest since March, and it appears that many have viewed this mild bounce as the trigger to trade again.”
Factors Influencing Strong BTC Price Rally
Bitcoin (BTC) price recovery from $18,702 saw traders taking the “buy-the-dip” opportunity to make some profits. It resulted in Bitcoin climbing back above $22k today for the first time in over 3 weeks.
Also, a continuous fall in the US dollar index since September 7 spurred bullish sentiment in the market. Moreover, futures and options witnessing increasing open interest.
MicroStrategy filing with the SEC for buying more bitcoins has also contributed to the rally.