Bitcoin daily active addresses is on the increase. These increases have been triggered by the increase in the price of Bitcoin after the crash. Investors are now seeing this as a chance to stockpile digital assets at a bargain price, even though the price is down over time. The result has been a large number of daily addresses. This is a sign that bigger things are ahead.
One Million Active Addresses in Three Days
Santiment, an on-chain analytics firm published recently a report that details the daily active bitcoin addresses. The number of active addresses per day has seen an increase in this week’s trading after the market recovered over the weekend. On Tuesday, it had reached 1,000,000 daily active addresses for the first time. This is not unusual considering the bitcoin adoption trend. However, it has grown.
JPMorgan Puts Bitcoin At $150,000 In The Long-Term, But What About Its ‘Fair Value’?| JPMorgan Puts Bitcoin At $150,000 In The Long-Term, But What About Its ‘Fair Value’?
In the two following days, the active addresses remained at the above 1,000,000 mark. Santiment reported that Thursday’s number of active bitcoin addresses reached 1.02 million. This was the third consecutive week.
📈 #BitcoinThe number of daily active addresses reached 1.02m Thursday. It was the third consecutive week with 1m+ $BTCAddresses for interacting with the network. This threshold has not been exceeded for three consecutive days since December 1-3 when the prices were $56k to $57k. https://t.co/49eVEHz9QN pic.twitter.com/wHvgMtDKzq
— Santiment (@santimentfeed) February 11, 2022
Thursday was the third consecutive day that bitcoin transactions with the network were above the threshold. Although it is not a new phenomenon, this can give an indication of the future. In December 2013, bitcoin reached 1,000,000 daily addresses in a span of three days. Even then, it held interesting implications for digital assets.
Bitcoin: What Can You Expect?
The cryptocurrency’s three-day streak of more than 1 million daily active addresses points to significant activity. This is consistent with a bearish trend for digital assets in the near-term, according to historical data.
These metrics were last seen in bitcoin between December 1st and 3rd, 2021. A quick glance at the chart shows there was an immediate price crash. In just hours bitcoin lost more than $10k, plummeting from $57,000 to $42,000 quickly. Even though the asset was beginning to recover, this would only be the beginning of an extended downtrend that is continuing until now.
Source : BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
This suggests that bitcoin may be in for a major crash Friday, if this trend continues. Using a conservative estimate and the digital asset’s current price could put it towards the $38,000 price point, meaning that BTC could once again lose its footing above $40,000.
Read Related Reading| Bitcoin Steadies Above $45k, US Inflation Comes In At 7.5% Year Over Year
This could be either positive or negative. An investor could consolidate and accumulate their bitcoins with the high number of active addresses each day. This could indicate a bullish trend, which could see bitcoin rise to $46,000. It would also solidify the bull rally.
Featured Image from The Cryptonomist. Chart from TradingView.com