According to data from CoinMarketCapBitcoin (BTC) seems to have finally found some stability in September, with a price boost of almost 13% in the last week. Interestingly, crypto analyst Burak Kesmeci has revealed a condition behind this price boost that could prove to be crucial in initiating a bull market.
Bitcoin Bulls Dominance Strengthens, Web Address Approaches 350,000
On Friday, Kesmeci shared via Posts X detailing how the number of up-to-date Bitcoin addresses per day is a mighty indicator of price movement. In relation to the recent price rally, the analyst noted that the number of up-to-date Bitcoin addresses has increased, reaching 330,000 with the potential to touch the critical 350,000 threshold.
Kesmeci explains the key status of 350,000 by stating that whenever the number of up-to-date Bitcoin addresses exceeds this level, it means that bulls are gaining influence in the market and the price trajectory is upward. On the other hand, when the value of up-to-date BTC addresses falls below this threshold, it may indicate a price correction or the beginning of a bearish season.
In the second case, the cryptocurrency analyst explains that an immediate drop in the number of up-to-date BTC addresses below 250,000 would result in a full-blown bear market, as we have already seen three times in the last six years, i.e. from $19,000 to $6,000 in 2018, from $64,000 to $30,000 in 2021 and from a record $74,000 to $49,000 in 2024.
However, the recent boost in up-to-date Bitcoin addresses, which has dropped from below 200,000 to above 300,000, has been largely unimpressive. Kesmeci predicts that if this metric surpasses 350,000, especially after the US Federal Reserve meeting next week, BTC investors could be in for a “delicious” period.
Related Reading: Bitcoin Rebounds After CPI Data Drop, But Is It Sustainable?
Will the BTC Spot ETF threaten the development of the network?
The Bitcoin spot ETF market is one of the most stimulating cryptocurrency developments of 2024. It is widely believed that these exchange-traded products will drive institutional demand for Bitcoin in the long term. While such views may be true, Kesmeci expressed concerns that these ETFs will hinder the network’s growth.
This is because a single ETF could hold BTC for multiple investors who would create individual network addresses if they invested in Bitcoin directly. This is why there is a need for constant up-to-date waves of retail investors even in the face of ETF-driven price increases.
At the time of writing, BTC is trading at $60,395, reflecting a price boost of 4.31% over the past day. Alternatively, the asset’s daily trading volume fell 9.35% to $30.5 billion.
Featured image from Investopedia, chart from Tradingview
