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Posted:
- A record number On September 9, 717,331 new addresses were created on the Bitcoin network.
- This suggested a renewed interest in the leading crypto asset.
A record number of new Bitcoin [BTC] Addresses were created on September 9, adding 717,331 addresses to the coin’s network. This is the highest number of new addresses created in the last five years, crypto analyst Ali_Charts noted in a recent post on X (formerly Twitter). The previous record was set on December 14, 2017, when 800,180 new addresses were created.
#Bitcoin | On September 9, no less than 717,331 new ones $BTC Addresses have been created – the highest in 5 years!
Only once before, on December 14, 2017, did we see a larger increase with 800,180 new #BTC addresses. History in the making! pic.twitter.com/GLgymql9vL
— Ali (@ali_charts) September 10, 2023
Read the Bitcoin price forecast for 2023-2024
A surge in new demand for an asset often foreshadows a price increase, indicating renewed interest in that asset. However, with the price of BTC facing significant resistance at $26,000 and weighted sentiment now in the negative territory, the possibility of a price increase in the meantime remains minimal.
Buyers and sellers wait for the first mover
At the time of writing, the leading coin was exchanging hands at $25,862. With prices consolidating within a tight range in recent weeks, readings of BTC’s Bollinger Bands (BB) indicator observed on a daily chart showed that volatility in prices has decreased.
August was predominantly characterized by price fluctuations, mainly due to the deleveraging on August 17. As the market moves from the aftermath of the liquidity flush and spot traders refrain from executing large trades, the gap between the upper and lower range of BTC’s BB has narrowed. The narrowing of the BB bands suggests that BTC volatility has decreased.
Furthermore, the position of BTC’s key momentum indicators showed that while accumulation has faltered, there has been no significant sell-off by spot traders. Although daily distribution has exceeded accumulation, volumes have not been high enough to trigger a downward price swing.
The currency’s Relative Strength Index (RSI) and Money Flow Index (MFI) have flattened for most of the month. At the time of writing, the RSI was 46.76, while the MFI was 39.61.
Despite this, BTC’s Directional Movement Index (DMI) showed that sellers controlled market activity among daily traders. This indicator measures the strength and direction of a price movement.
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At the time of writing, the positive direction indicator (green) was at 17.97 below the negative direction indicator (red). This showed that the power of the BTC sellers was greater than that of the buyers.
However, the position of the Average Directional Index (ADX) offered some respite. At the time of writing, the downtrend was weak at 21.98. And a change in market sentiment could put the bulls back in control.
Source: BTC/USDT on TradingView