Bitcoin Now Forming Pattern That Last Led To It Blasting Off
July 09 2024 - 7:00PM
NEWSBTC
On-chain data shows that Bitcoin is forming a pattern in its Total
Amount of Holders, which last proved bullish for the
cryptocurrency. Bitcoin Has Seen A Fall In Its Total Number of
Holders Recently According to data from the on-chain analytics firm
Santiment, BTC investors have been liquidating their wallets amid
the recent bearish wave in the asset. The indicator of relevance
here is the “Total Amount of Holders,” which measures, as its name
suggests, the total number of addresses holding some balance on the
network. When the value of this metric goes up, it means new
investors are joining the network, and old ones who had sold
earlier are returning. The trend can also arise due to existing
users creating new addresses for privacy purposes. Related Reading:
Solana Mirroring 2021 Bullish Pattern, Crypto Analyst Reveals In
general, some net adoption occurs when the Total Amount of Holders
rises. Adoption is a constructive sign for any cryptocurrency in
the long term. On the other hand, the indicator registering a drop
implies some investors have decided to exit from the asset as they
are completely emptying their wallets. Now, here is a chart that
shows the trend in the Total Amount of Holders for five top coins
in the sector: Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Cardano
(ADA), and Chainlink (LINK), since the start of the year: As is
visible in the above graph, the total number of holders has
recently gone through a drawdown for Bitcoin. This decline in the
metric has come as the price of the asset itself has been moving
down. In total, 566,000 BTC wallets have emptied themselves during
the last three weeks. The timing would suggest that the bearish
market has spooked these investors into exiting. Interestingly,
Ethereum, Cardano, and XRP have continued to see a net increase in
this indicator, implying that adoption has only furthered for these
altcoins. While BTC’s decrease does imply that holders are moving
away from the network, the fact that FUD is the reason behind this
departure may play into the cryptocurrency’s favor. Historically,
Bitcoin has tended to show moves in the direction opposite to what
the crowd thinks, so the development of FUD has often led to the
coin finding a reversal towards the upside. Related Reading:
Bitcoin MVRV Ratio At Make-Or-Break Test: Will Support Hold? From
the chart, it’s apparent that the total amount of holders also
decreased in January and February, and this trend followed a sharp
rally for the coin towards a new all-time high (ATH). “Patient
bulls should be pleased with this, as self-liquidating wallets from
impatient non-believers is a sign of FUD-causing bottoms, just like
we saw in January,” notes Santiment. BTC Price At the time of
writing, Bitcoin is trading at around $57,400, down more than 7%
over the last week. Featured image from Dall-E, Santiment.net,
chart from TradingView.com
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