In less than a month, the Bitcoin network has added nearly 1 million wallets with non-zero balances. According to data presented by Glassnode, in late February the number of non-zero wallets on the network dropped from around 44.2 million to around 43.8 million by February 23rd.rdHowever, the metric has since made a roaring recovery, hitting a new all-time high of 44,778,000 as of Wednesday the 15th.th of March.
Analysts consider the number of wallets with non-zero balances of Bitcoin addresses as a rough indicator of network adoption. The growing number of wallets with non-zero balances is likely to correspond to the growing number of individual users of the network and investors in Bitcoin. An increase in the number of addresses with non-zero balances theoretically means an increase in demand for Bitcoin, which (in the long run) should boost its value.
The sharp increase in the number of wallets with non-zero addresses is not the only on-chain proxy that is driving Bitcoin demand in a positive direction. According to Glassnode, his 7-day exponential moving average (EMA) for new addresses interacting with the Bitcoin network has been trending upwards since last summer, and earlier this month he reached the highest level since mid-2021. Did.
The 7-day EMA for daily transactions on the Bitcoin network has also been rising since the end of last year and recently reached its highest level in over two years.
The 7-day EMA recovery for active addresses was a bit unimpressive, but it nevertheless recently hit a multi-month high above 1 million and seems to have peaked since mid-season. in 2021.
Finally, even the 7-day EMA of total USD-denominated transfers taking place in the network shows very tentative signs of recovery from very subdued (by recent historical comparison) levels. increase.
Other on-chain indicators suggest Bitcoin is moving into a new bull market
As we discussed in a recent post, most of the on-chain and technical indicators we monitor in Glassnode’s widely-followed “Recovery from Bitcoin Bear” dashboard are flashing green, and soon all eight will be It should start blinking green. Glassnode created this popular dashboard to help identify if Bitcoin is moving from a bear market to a recovery/new bull market.
The ‘Recovery from Bitcoin Bears’ dashboard shows whether Bitcoin is trading above key pricing models, whether network usage is gaining momentum, whether the market is returning to profitability, Track 8 indicators to see if the USD-denominated Bitcoin asset balance is favorable in the long run. HODLers.
This has historically been a strong bullish signal for the Bitcoin market when all eight are flashing green. Currently, seven of the eight indicators are flashing green. The chart above is shaded light blue when 5 of the 8 indicators are flashing green, and dark blue when all 8 indicators are flashing green.
What’s next for BTC price?
After several days of intense volatility last weekend/earlier this week, Bitcoin is consolidating near $25,000 as market participants consider the next move for the world’s largest cryptocurrency by market cap. It is believed that the recent decoupling of Bitcoin to U.S. equities could cause Bitcoin’s price to continue to rise as concerns over financial stability in the United States and elsewhere continue to rise.
Bitcoin, a decentralized and independent peer-to-peer payment network, is seen by many as a secure alternative to fiat-based, central bank-centric fractional reserve systems. Another potential tailwind for Bitcoin is If Next Week’s Federal Reserve Board Is Decisively Dovish (Assuming Federal Reserve officials fear hawkish messages could further disrupt the banking system).
Meanwhile, BTC’s recent strong rally from 200DMA and realized price below $20,000 is another tailwind. The fact that Bitcoin was able to break out of his $25,200-$400 key long-term resistance earlier this week has pushed him up towards the next resistance area around $28,000 and perhaps he could even test at $30,000. It means that there is