Bitcoin price: Bitfinex analysts say BTC is in “transition”

Posted on

  • The number of bitcoin wallets with non-zero BTC balances recently hit a new all-time high of 45.388 million.
  • However, daily active addresses and daily confirmed transactions fell.
  • Bitcoin price remains bullish, but analysts urge caution as on-chain metrics indicate weakness amid renewed correlation with the S&P 500.

bitcoin price The trend is currently trading above $28,300, up about 0.7% over the past 24 hours. Beyond the rumors surrounding the red notice warrant for Binance CEO Changpeng Zhao, there has been little movement in the crypto market.

Bitcoin’s resilience also comes after market reaction to Twitter CEO Elon Musk’s move to replace the platform’s bird symbol with a Shiba Inu dog, which is a symbol for DOGE – the original meme crypto’s native token. dog coin,

DOGE price surged over 30% to above $0.1 for the first time since early December 2022.

Bitcoin Growth Outlook: Non-Zero Balance Wallets Hit 45.4 Million

Bitcoin continues to see huge demand as non-zero balance Purse This has increased to over 45 million, according to details shared in the latest Bitfinex Alpha reports,

But even as the benchmark cryptocurrency records a new high for small BTC holders, with non-zero balance wallets rising at the fastest rate since the start of 2021, the report suggests analysts commenting on bitcoin price investors One may have to be a little cautious. short term.

According to on-chain data, the number of non-null addresses reached 45.388 million last week as the bitcoin price held above $27k to end the first quarter on a bullish note.

The surge in non-zero balance wallets reflects a positive development for the network and for the price of bitcoin, with an increase in this metric indicating that more investors have entered the bitcoin market recently. In any case, an increase in non-zero balance holders often points to new demand, especially from small investors.

Nevertheless, this positive outlook aside, other on-chain metrics suggest that bulls may need to remain cautious in the near-term. As noted in the Bitfinex Alpha report, the market is in a state of transition and indecision.

,A transition state is characterized by volatile market conditions where price consolidates in a tight range before trending in either direction. Despite the influx of new market entrants, this phenomenon of both increasingly non-zero balances and tight range-trading remains a fixture for bitcoin. wavering,” he noted.

BTC Price – Key On-Chain Metrics Suggest Weakness

Analysts at Bitfinex suggest that other metrics indicate that bitcoin price could continue consolidating around $28 as both bulls and bears remain indecisive.

Key on-chain metrics to watch are bitcoin network statistics related to daily active addresses and daily confirmed transactions.

For example, the 7-day moving average of daily active addresses recently dropped to levels seen in late January. There has also been a decline in the number of confirmed daily transactions.

Over the past two weeks, the bitcoin network recorded a 7-day average of 293,058 transactions, with data on March 30 suggesting a 13% decline from the data recorded on March 8. Bitfinex analysts commented on two metrics:

,While this is an inconclusive indicator in terms of bullish or bearish signals, a decrease in daily activity and transactions for bitcoin has always occurred in transitional phases in the crypto market. They suggest indecision and an uncertain position for both the bulls and the bears,

Bitcoin’s Correlation With the S&P 500 – Is It Rising Again?

While bulls again attempt to consolidate above $28k, data shows that BTC correlation with stocks is on the rise after BTC price plunged in early March, BTC price ends month above major US Is outperforming the indices and at the end of Q1, 2023.

However, according to a report by Bitfinex and CoinJournal analyst Dan Ashmore Thrown light on Over the past week, bitcoin is on track to restore its correlation with the S&P 500 and NASDAQ Composite as its price continues to hover between resistance above $27k and $28k.

Notably, the Pearson metric shows the BTC/NASDAQ correlation as high as 0.61 while the correlation with the S&P 500 reads 0.12.

Any value above zero indicates a positive correlation and these figures suggest that bitcoin may be trading more in lockstep with equity indices amid macroeconomic headwinds.

Leave a Reply

Your email address will not be published. Required fields are marked *