Bitcoin continues its tread towards the $21,000 mark which is likely to be reached soon as $20,000 has now become support. Over the past 24 hours, BTC has gained 2.59% and is trading at $20,729. Ethereum is up at $1,551 having gained 4.69%.
The altcoins recorded decent gains. Dogecoin is the biggest gainer. It’s up by 27.05% in the past seven days. Cardano gained 15.95%, Polygon 12.15%, and Shiba Inu 11.87%. Wednesday’s gains saw the crypto market capitalization at $1.04 trillion.
Glassnode’s The Week On-chain Newsletter highlighted a bear case. It includes limited on-chain transaction activity, stagnant non-zero address growth, and reduced miner profits presenting a strong Bitcoin sell-off risk. Data also suggests that long-term hodlers are more determined than ever to weather the current bear market. On the other hand, the bull case entails an increase in whale wallets, outflow from centralized exchanges, and hodling by longer-term investors. Data shows that new addresses within the Bitcoin ecosystem that possess a non-zero address have plateaued. This trend had also been seen in 2018. It should be noted that stalled growth in new non-zero addresses back in 2018, was followed by a Bitcoin price drop that did not recover until January 2019 when the metric began to increase.
The Wolf Of All Streets Scott Melker analyst believes it’s literally impossible for Bitcoin to attempt a reversal at a more ideal spot. Rekt Capital, a crypto analyst, sees Bitcoin in consolidation between the 200MA and 300MA on the weekly chart. It says bulls could do well to watch a key price level. Rekt Capital said Bitcoin needs to break above $23,400 to register a stronger acceleration. He pointed out that, it may be easy to get excited about the recent uptrend in Bitcoin’s price action, but macro-wise, BTC is in its historical bottoming area and hasn’t registered a major breakout yet.
The popular crypto needs to first break $23,450 to see stronger trend acceleration.