Bitcoin Market ‘Much Different Now’ as New BTC Wallets Approach 2017 Highs

Posted by Joseph Young

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New on-chain data suggests that demand for Bitcoin (BTC) from new investors is growing. Specifically, the number of new BTC addresses is nearing 2017 levels when the price hit $20,000.

Brock Connelly, the CEO of RoundBlock Capital, said:

“Has anyone noticed, daily active addresses (Bitcoin) is back above June 2019 levels, and approaching high of 1.29mm in December 2017. BTC market feels much different now.”

Various on-chain metrics hint at a continuation of the Bitcoin uptrend, despite the digital asset’s 28% increase in the past three weeks.

Buyers show renewed interest as new BTC addresses rise

After the Aug. 2 Bitcoin flash crash, both BTC and Ether (ETH) have steadily increased in price. At the time, more than $1 billion worth of futures liquidations in one hour sent the market plunging for a brief period of time.

Since then, major cryptocurrencies have stabilized, seeing less volatile price movements. The stability of BTC and ETH could also indicate the start of an accumulation phase.

While this week’s BTC price action has been strong, the digital asset has many technical reasons to see a rejection from the $11,700 to $12,000 range. Historically, $12,000 has served as a strong resistance level and every attempt to close a weekly candle above it in the last two years led to prolonged corrections.

With that said, the price of Bitcoin is steadily increasing as metrics like new BTC addresses continue to rise. The data suggests that many investors appear to be gradually accumulating BTC…CLICK for complete article