A careful analysis of the movements on the Bitcoin network often reveals interesting content. This week I found some that I will now share with you. These are extremely bullish factors for the network and for Bitcoin in general: let's see immediately what it is.
In my last article, I analyzed people's interest in cryptocurrencies and declining popularity. Towards the end I highlighted how it would seem that the price of Bitcoin is going against the trend of the skimming that is taking place in the market. The fear of war in Europe has contributed a lot to cooling prices, but some entities are evidently taking advantage of it to accumulate BTC at reduced prices.
Last article ---> Did Cryptocurrencies lose Popularity?
First of all, taking a quick look at the number of addresses with a non-zero balance of Bitcoin within them, it is impossible not to notice how this is in strong uptrend. There have been sudden increases especially in the last period, starting from 2021. This means that more and more people are approaching the Bitcoin network and, although many of them have been scared by the recent price drops, others have took advantage to enter. Needless to reiterate how important all this is for the network, as well as the fact that mass adoption is around the corner now more than ever. Just think of the developments in El Salvador and in the city of Lugano.
That's not all: Intotheblock lets us know that the number of new addresses that hold BTC is also constantly growing even if in 2022 the price is in a downtrend. This goes to sharply reinforce the hypothesis that there are new investors piling up.
The proof of the hypothesis made above is obtained from Glassnode, where we see a clear exit of BTC from the Coinbase exchange. It is about 30,000 BTC that left the exchange wallet, purchased at the current price. Precisely the price range in which Bitcoin is now located, i.e. the one that goes from $38000 to $42000, is one of those where there have been the highest trading volumes. In fact, it represents one of the major supports that Bitcoin has at the moment.
Going then to see what the entities that accumulate the most, i.e. those that hold more than 10 BTC, do, one of the most interesting things of this analysis can be seen. These entities were in decline from early 2021, coinciding with the bull-run. From mid-2021, however, they began a period of laterality which apparently ended in this period when the graph began to show a trend reversal. It can be seen, in fact, that for a month these investors have started adding Bitcoin to their wallets, defining the end of the unloading period.
Conclusions
We conclude this analysis with a hypothesis: Bitcoin has seen a major rally in the past two years and this has led many people to record high earnings. For this reason, it is plausible that some of these investors have thought about making take-profits in the peak price period, then starting to accumulate again at the current level. Undoubtedly many external factors have also influenced, but the on-chain signals are very evident and eloquent. However, we are waiting for the price to move from this accumulation zone that lasted more than a year, thus marking the directionality that will probably characterize Bitcoin for at least another year.
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