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- Bitcoin’s active addresses confirmed strong FOMO as the digital asset reached new highs.
- Selling pressure increased as HODLers started making profits in the medium term.
Abundant Bitcoin [BTC] Predictions have been made so far this year, with many analysts expressing optimism about BTC rising well above $100,000.
The latest rally seemed to have caused a wave of FOMO, which was evident from the increase in the number of addresses holding BTC.
According to CryptoQuantthe last Bitcoin rally was marked by an increase in the number of active addresses.
This was not only a sign of confidence in the current market situation, but also an indication that they do not want to miss the rally.
The number of active addresses was only 766,947 on November 3, but increased to more than 1.18 million addresses on November 12.
This outcome emphasized a directly proportional outcome to price.
Source: CryptoQuant
The increase in the number of active addresses holding Bitcoin also reflected the heavy ETF inflows seen during the same period.
Is Bitcoin Buying Pressure Easing?
While active addresses have contributed to the bullish momentum, recent data also indicated that profit-taking has begun to increase.
This was especially true for a certain cohort of HODLers who had been holding BTC for 6 to 18 months, especially in the spot market.
Source: CryptoQuant
Data shows that the number of buyers who recently sold started accumulating as early as May 2023. Those who held out until recently have made gains of more than 200% during those 18 months.
According to CryptoQuant, these are medium-term holders whose average entry point was within the 28,000 price range.
About 230,000 BTC moved from November 3 to 12 from addresses held for 6 to 12 months. About 41,500 BTC moved from addresses held for 12 to 18 months.
Is this the end of the last bullish wave?
A surge in selling pressure from hodlers in the medium term could indicate that Bitcoin is poised for a significant pullback.
It recently peaked at $89,940 during the trading session on November 12 and has since shown some bullish exhaustion and some selling pressure.
Source: TradingView
Bearish expectations have risen due to the fact that the price was deeply overbought.
The selling pressure from medium-term holders not only confirms a strong increase in profit-taking, but also that long-term holders may expect some pullback after BTC’s latest rally.
Read Bitcoin’s [BTC] Price forecast 2024–2025
While a pullback from current levels is reasonable, bullish expectations are still high, especially as 2025 approaches.
The rise in active addresses suggested that FOMO could likely maintain a higher price floor and encourage more buying as investors continue to view Bitcoin as an attractive option under $100,000.
