Don't miss out on the increase in BTC price!
Bitcoin does not have a significant on-chain volume or even an active address growth as it had during the latest price uptrends in BTC. Research indicates that despite the $24,708 decrease in Bitcoin BTC tickers, bull markets continued to lack the growth of active addresses and on-chain volume.
Crypto Quant, an on-chain analytics tool, gave a critical analysis of the 2023 BTC price rebound and pointed out that Bitcoin may not be as strong as it looks. Several analysts continue to express a healthy level of concern as on-chain indicators turn green and some even display bull signs that have not been seen in years.
Increase In BTC Price
One of them is Yonsei Dent, a contributor to Crypto Quant, who last week pointed out that the year 2023 does not correlate with previous bull markets in one of the platform’s quick-take blog entries.
He argues that the problem is that the number of active addresses is not growing, despite the fact that BTC/USD has increased by approximately 50% year to date.
The blog post claims that the “Active Addresses” number, which includes all addresses that send and receive Bitcoin, provides an indicator of how active the market demand is. The market’s rules of supply and demand determine how much an item is valuable.
Cryptocurrency markets are no different. Market demand and interest must be encouraged for asset prices to increase. The following figure demonstrates that after the bear market’s ending in 2018 and the COVID-19 cross-market crisis in March 2020, the 30-day moving average (MA) of active addresses has increased. In contrast, a similar tendency has not yet been seen in 2023. Yonsei dent added,
After the 2019 bull market turned around and after the 2020 COVID-19 shock, Active Addresses (30DMA) improved. I am worried that there was no increase in Active Addresses at this 2023 protest. Similar findings from other studies regarding Bitcoin investment behavior, which have coincided with the comeback to $25,000, were reached.
On-chain volume is still low, according to analytics company Glassnode, as both long-term and short-term investors are unable to make purchases.
It started in the most recent issue of its weekly newsletter,
“The Week On-Chain,” that despite the net increase in on-chain activity and an ATH in total UTXOs, transfer volumes are exceptionally low, both for Long and Short-Term Holders.
Coins delivered to exchanges by LTHs are currently mostly in profit, which is one powerful proof of the sentiment’s growth. Glassnode data indicates that 2 LTH coins were traded at a loss at the start of this week, compared to 58% in the middle of January.