- Bitcoin addresses with a balance have been growing since December.
- If Bitcoin overcomes the resistance at $44,176, the price could reach $50,000.
According to Bitcoin [BTC] research specialist Axel Adler Jr. the number of new addresses joining the network has increased to a daily average of 428,000.
Adler noted in his post that the growth has occurred on that day since November 17. He also added that the increase was much higher than during most of 2023.
The number of new addresses in the network amounts to 428K per day. This is the average value of the past year. These statistics have grown since December 17, when the network experienced a local minimum.
Will these addresses be enough to increase the price? Answer: Yes. pic.twitter.com/RX7LzM6PMP
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) January 4, 2024
Will BTC Rise as Demand Increases?
A growth in the number of new addresses means that more participants will receive their first transaction and a balance. It also implies that the demand for Bitcoin is increasing.
Like Adler, AMBCrypto also believes that the surge in demand could lead to a higher price for BTC.
However, it is uncertain when the peak will come. Investors should keep an eye on the short-term price action as several catalysts could impact it.
At the time of writing, BTC changed hands at $43,626. This indicated a quick recovery of the currency after the crash that occurred on January 3.
In terms of active addresses, AMBCrypto found that Bitcoin started the year slowly at 765,000. But on January 4, 24-hour active addresses reached 1.08 million, Santiment data revealed.
Source: Santiment
Active addresses help indicate the rate of user activity on the blockchain.
Despite falling to 958,000 at the time of writing, the jump implied that new wallets were not the only ones handling Bitcoin. Instead, existing users have also increased their interaction.
Furthermore, the increase in overall activity could be linked to anticipation surrounding a possible approval of Bitcoin ETFs. Recently there has been discussion about the US SEC’s position on ETF registrations.
However, most opinions from reliable sources tend towards a positive result.
Predictions Say: “Bitcoin to the Moon”
As a result, predictions have emerged with many noting that Bitcoin could surpass $50,000. Others think the coin price could move higher once the ETFs get the green light. One of them is Arthur Hayes, co-founder of crypto exchange BitMEX.
In a January 4 blog post, Hayes opined that Bitcoin could surpass the previous All-Time High (ATH). Him though named that BTC could experience a notable pullback after this. He noted that:
“I could easily see a 30% to 40% correction due to strengthening dollar liquidity. This is why I can’t buy Bitcoin until the March decision dates have passed.”
From a technical perspective, BTC is in a sticky situation that can make or mar its price. At the time of writing, the 4-hour chart showed notable resistance at $44,176, preventing the coin from testing $45,000 again.
If Bitcoin breaks through the resistance and the ETFs get the green light, the price could rise towards $50,000. It is also possible that the value will rise higher. However, if the coin fails to break the said area, a downward move could be next.
Source: TradingView
Read Bitcoin’s [BTC] Price forecast 2024-2025
Between the two options, the first seemed likely. This was due to the Relative Strength Index (RSI). At the time of writing, the RSI was 52.57, indicating a return of buying momentum.
If the momentum continues, it would be easy to break towards $45,000 to begin with.