Despite the recent surge in Bitcoin’s price, reaching a high of $44,000, there’s a growing concern over the stagnation in Bitcoin network growth. An increase in new addresses typically supports a healthy and sustainable bull rally in the cryptocurrency market. However, recent data suggests a noticeable dip in new Bitcoin address creation, casting doubts on the longevity of the current price uptick.
There’s been a noticeable dip in #Bitcoin network growth over the past month, casting doubt on the sustainability of $BTC’s recent move to $44,000.
For a robust continuation of the bull rally, it’s crucial to see an uptick in the number of new $BTC addresses. This would provide… pic.twitter.com/WkrjxLkZMI
— Ali (@ali_charts) December 18, 2023
BTC Whales Accumulate as New Addresses Decline
Interestingly, while the overall network growth shows a slowdown, Bitcoin whales seem undeterred. Data from IntoTheBlock indicates that these large holders have accumulated over 22,000 BTC in the past week. Concurrently, the Bitcoin (BTC) price has fallen in the last 24 hours after failing to break beyond the intraday high of $42,395. The bears were still in charge at press time, with the BTC price trading at $41,037, a 2.07% drop.
BTC/USD 24-hour price chart (source: CoinStats)
This accumulation occurs in the face of the Bitcoin price experiencing minor corrections and fluctuations. However, a deeper analysis reveals a nuanced scenario. Santiment’s BTC supply distribution chart points to sell-offs at certain intervals despite these large addresses’ overall increase in holdings.
Exchange Inflows Signal Mixed Sentiments
Adding to the complexity of the market’s current state is the increased inflow of Bitcoin to exchanges. Analysis from CryptoQuant suggests a recent uptick in Bitcoin moving to various exchanges, a typical indicator of heightened selling activity. This trend aligns with the fluctuating patterns of whale accumulations and disposals. The exchange netflow is around 805 BTC, a factor that might be contributing to the need for more impact on the price trend despite ongoing accumulation by whales.
My expectations are that we’re getting towards the end of this upwards run of #Bitcoin.
Perhaps $48-51K and then we’ll correct and rotate towards the #Ethereum ecosystem, bringing Ethereum towards $3,000-3,500.
— Michaël van de Poppe (@CryptoMichNL) December 16, 2023
Moreover, crypto analyst and trader Michäel van de Poppe has weighed in on the current Bitcoin trends. Van de Poppe suggests that we may be nearing the end of Bitcoin’s current uptrend, proposing that a price range of $48,000 to $51,000 could represent a peak before a correction occurs. His insights are particularly relevant given the mixed signals in the market, with accumulation by whales on the one hand and increased exchange inflows on the other.
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