Bitcoin (BTC) is seeing a decline in the number of new addresses joining the network, a revelation by on-chain analytic provider ‘Santiment’ disclosed. According to Santiment, Bitcoin wallets with more than zero coins had not climbed for weeks, indicating a drop in network growth.
It is noteworthy to mention that this has been the case since the U.S. Securities and Exchange Commission (SEC) approved all 11 Bitcoin ETFs. But since the price of BTC jumped to $49,000 and later tumbled, market players have remained less interested in the coin.
📉 #Bitcoin’s wallets (with greater than 0 coins) are still declining as #crypto nears 4 weeks since the #SEC’s 11 Spot #ETF approvals. This can be attributed to crowd #FUD, and less interest in direct $BTC ownership due to other investment alternatives. https://t.co/tjnjELxGw1 pic.twitter.com/xRymU7C0ro
— Santiment (@santimentfeed) February 7, 2024
This stance also meant that liquidity was rotating into other alternatives since BTC’s next direction looked indecisive. However, BTC’s price briefly tapped $43,000 on February 7 before its recent decline below that level.
Bulls Are in Defense
Looking at the 4-hour chart, bulls seem to be active and trying to hold the support around $42,594. But there were a lot of hurdles to face. One major resistance was around $43,284. A successful close above this level could see BTC climb to $44,000.
But if Bitcoin’s price drops below the key bullish trendline, the recent gains might be erased. Should this be the case, BTC might fall to the next major support, which was around $41,711. If this happens, bulls would have to defend this zone, or else a decline to $38,000 could be next.
Furthermore, the technical outlook showed that bears have not been able to drag Bitcoin below the 20 EMA (blue) at $42,912. Also, BTC’s price was above the 50 EMA (yellow) at $42,747.
BTC/USD 4-Hour Chart (Source: TradingView)
It’s a Big Show Between Opposite Sides
Although there have been repeated attempts to flip the zone, the inability showed that bulls were shielding the level from lurking bears.
As it stands, buyers might try to push BTC above the $44,434 overhead resistance. If successful, the BTC/USD pair could jump above $49,000 one more time. But if bears resist the attempts, Bitcoin might drop and probably keep consolidating between $41,000 and $43,000.
Furthermore, the 4-hour chart showed how buying momentum drove the RSI to 56.12 on February 6. However, buyers were unable to sustain the pressure, leading the reading to drop to 50.08.
BTC/USD 4-Hour Chart (Source: TradingView)
With this momentum, BTC might struggle to hit $44,000 in the coming days unless the previous buying pressure returns. Also, indications from the MACD suggested consolidation as the 12 (blue) and 26 (orange) EMA closes remained in tight ranges.
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