Summary:
BTC has surged by 5.91% over the past month.
Analyst Burak Kesmeci emphasizes 350k new addresses as critical for sustaining Bitcoin's uptrend.
A decline in active addresses from 1.1 million to 980k raises concerns.
Historically, falling below 250k addresses has led to significant price drops.
Current market sentiment is bullish, with increased demand reflected in the fund flow ratio.
Bitcoin's Recent Surge
BTC has surged by 5.91% over the past month, hitting a local high of $69k after a low of $58k. However, there’s a concerning trend as daily active addresses have dropped from 1.1 million to 980k, raising eyebrows among analysts.
Source: Cryptoquant
The Critical 350K New Addresses
Analyst Burak Kesmeci from Cryptoquant suggests that 350k new addresses are crucial for Bitcoin to maintain its upward momentum. He argues that the market is only healthy if new Bitcoin addresses are on the rise. If new addresses fall below this level, it could signal a strong downward trend, leading to a bear market. Historical data shows that Bitcoin addresses below 250k have often preceded significant price drops, such as in 2018, 2021, and 2024.
Currently, despite a surge in new addresses in 2024, the numbers have not surpassed 350k, fluctuating between 210k and 349k.
Implications for BTC Charts
While Bitcoin hasn’t yet reached the critical 350k new addresses, it is experiencing a strong uptrend, with market sentiment leaning towards bullish. The exchange supply ratio has declined sharply, suggesting that holders are accumulating Bitcoin, indicating they have no immediate plans to sell.
Source: Cryptoquant
Additionally, the fund flow ratio has increased from 0.06 to 0.15, signaling heightened demand and a bullish market outlook.
At the time of writing, BTC was trading at $67,714, with the potential to face resistance at $69,400 if the current market sentiment holds.
Comments