Journalist
Posted:
- Bitcoin rose to $26,500 as active addresses remained high.
- Although the market has become bullish, BTC may only consolidate in the short term.
Bitcoin [BTC] hit $26,500 on September 12, in a move that brought a measure of optimism back to the market. However, the rise only lasted for a while as the coin fell to $25,800. After this, it had a mild recovery to above $26,000.
Read Bitcoins [BTC] Price prediction 2023-2024
The king coin rebounds and weakens
On-chain analytics platform Santiment weighed in on the events that led to the increase. A recent post on X (formerly Twitter) also addressed the action that led to the withdrawal.
According to Santiment, the recovery to $26,500 was driven by activity in addresses interacting with Bitcoin.
📈 #Bitcoin continues its price dominance and has returned to $26.5K. There were 1.1 million addresses active on the $BTC network since Thursday, a 5-month high. Today, traders are taking profits after the mild rise since yesterday. https://t.co/gYZmp7v4NL pic.twitter.com/J9wHMK2fbg
— Santiment (@santimentfeed) September 12, 2023
Until now, AMBCrypto reported that active addresses on the Bitcoin network have risen to a five-month high. Since then, approximately 1.1 million active users have been associated with BTC.
As an indicator of speculation surrounding a currency, active addresses have historically been very important for changes in price direction. This time it seemed to be no different.
Also, the retracement below $26,000 could be linked to the quick gains that market participants made a little later. Santiment’s data shows that Bitcoin trading volume rose to $15.86 billion after the fall to $5.28 billion on September 10.
This increase in the metric implied that there was an increase in exchange activity involving BTC a credible sign of a continued bullish trend. So a $26,500 recovery could be likely.
That is, if addresses remain actively involved in Bitcoin transactions.
Source: Santiment
Optimism could lead sideways
Interestingly enough, Bitcoin also has a change in terms of sentiment. Previously, BTC’s weighted sentiment fell to a low of -0.498. However, at the time of writing, the statistic had risen to 1,419.
The weighted sentiment measures unique social volume while tracking the market’s SMS opinions. A positively weighted sentiment implies more and more positive comments about an asset.
Conversely, when the value of the metric is negative, it means that the broader market is not optimistic about the price action. But it was the first at BTC.
According to the exchange flow, it is possible that BTC will consolidate in the short term. This was because the inflow into the stock exchange at the time of writing was 2365. The inflow to the exchange is the amount of BTC sent to the exchange from external wallets.
Source: Santiment
Is your portfolio green? look at the BTC profit calculator
On the other hand, the outflows from the exchanges amounted to 2592. This measure is the amount of assets withdrawn from the exchanges into non-custodial wallets.
The closeness of the inflows and outflows at the time of writing therefore indicated that profit-taking and accumulation were virtually equal.