The price of bitcoin has been stagnating for several weeks now. This, in a particularly deleterious crypto context. However, the most popular asset among crypto investors has never attracted so much desire.
In short
- Despite the crypto price stagnating around $25,850, demand for bitcoin is experiencing a remarkable increase.
- Analyst Ali_Charts reports the creation of 717,331 new bitcoin addresses, the highest figure in five years.
- Market indicators are mixed with active sellers, but reduced volatility, making price projections uncertain.
Remarkable rise in demand for bitcoin (BTC)
Twice this year, the price of bitcoin (BTC) has soared to reach a milestone of $30,000. But the asset subsequently burned its wings. Not only has its price regressed, but it is also stagnating, currently valued at around $25,850.
Obviously, this loss of valuation has in no way dampened the enthusiasm for crypto. On the contrary, investor appetite for the asset has increased. Some data indeed shows sustained demand for bitcoin despite the vagaries of the crypto market.
Crypto analyst Ali_Charts reports a substantial increase in BTC portfolios. Concretely, 717,331 new wallet addresses joined the Bitcoin network. This is the highest number of new addresses created in the last five years.
This data is not far from the previous record for the creation of new addresses established on December 14, 2017. 800,180 new wallet addresses had, at that time, integrated the Bitcoin ecosystem.
In light of this element of comparison, we obviously realize that there is a certain revival of interest in BTC. The question remains whether this development may have an impact on the valuation of the asset. Nothing is less certain.
What outlook for the price of BTC?
Making a projection on the price outlook for bitcoin is not easy. This is because several elements come into play. In this regard, it should be noted that the analysis grids for bitcoin price dynamics are not unanimous.
For example, the Bollinger Bands (BB) indicator shows that the price of the flagship crypto has remained relatively stable. Which means that the price of the asset experiences rather reduced volatility.
However, the Directional Movement Index (DMI), which gauges the strength and direction of price movements, shows something else. He notably reports that BTC sellers are particularly active among daily traders.
Roughly speaking, key BTC momentum indicators show that BTC accumulation has slowed down. This implies that there was no substantial selling by spot traders. This data may suggest several implications for the price of the flagship crypto. But they do not necessarily allow a definitive conclusion to be drawn.
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