The cryptocurrency trader and analyst Ali revealed in a tweet yesterday that more people are showing interest in the market leader Bitcoin (BTC). According to the post, approximately 527,000 new addresses are being created on the Bitcoin network daily, which is a new yearly high.
As #Bitcoin continues to fluctuate around $26,000, an interesting trend emerges. Around 527,000 new $BTC addresses are being created daily, representing a new yearly high!
For those unfamiliar, this suggests more people are showing interest in #BTC, even if its price has seen… pic.twitter.com/7O0NcoJjMz
— Ali (@ali_charts) September 8, 2023
Despite BTC’s price fluctuating around $26,000, the analyst stated that the increase in the number of addresses in the leading cryptocurrency is a long-term bullish indication. Furthermore, he noted that this growth is a positive sign of sustained interest and trust in the network.
Daily chart for BTC/USDT (Source: TradingView)
From a technical standpoint, BTC’s price was trading just below the $26K resistance level at press time, which was confluent with the 9-day EMA line as well. If the cryptocurrency is able to close a daily candle above the $26K mark within the next 24-48 hours, then BTC’s price may continue to rise to the next key threshold at $26,800.
In an extreme bullish scenario, the leading cryptocurrency’s price could ascend to reach a high of $28,200 over the next 2 weeks. On the other hand, failing to close a daily candle above $26K within the upcoming 48 hours could result in BTC’s price retracing down to $25,300 in the following few days.
Continued sell pressure may result in BTC breaking below the crucial $25,300 support level and dropping to as low as $24,000 over the course of the next week. Investors and traders will, however, want to take note of the fact that technical indicators were favoring a short-term bearish outlook at press time.
Firstly, the 9-day EMA line was positioned below the 20-day EMA line. This signaled that sellers had the upper hand in terms of short-term momentum. In addition to this, a significant bearish technical flag was on the verge of being triggered.
At press time, the daily RSI line was attempting to cross below the daily RSI SMA line . If these two technical indicators cross, it will suggest an increase in bearish momentum. This may then result in BTC’s price dropping in the following couple of days.
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