Bitcoin (BTC) Traders setting up for a rally as new addresses soar in the last day

If price is a misdirection, Bitcoin believers have reason to be bullish if the sharp spike of new addresses in the last 24 hours is a precursor for buy pressure.

According to GlassNode, the number of new addresses spiked on the last day, as over 1,000 addresses were created. From the analytic firm’s 3-day moving average, the average rose from 13,803 to 15,412, a 12% rise.

BTC Prices range-bound

BTC prices are ranging, trading within a 1% zone with caps at $6,700 and retesting a critical resistance, previous support level at the $6,500-700 region.

The sharp uptick in new addresses reveals activity and adoption.

Bitcoin is primarily used as a value transfer layer where value can be moved from one area to another without intermediation and therefore high transaction fees.

Bitcoin as a shield against capital controls

Owners of Bitcoin have full control and when governments, because of infinite money printing, can introduce capital controls to stem currency flights like what the Chinese government is doing with the Yuan, BTC HODLers have full control.

Moreover, BTC’s volatile nature means that there are gains to be made if prices rise.

However, for traders and investors, this can also mean the entry of new traders who aware that Bitcoin halving is set for early May 2020 are positioning themselves, ready to tap price appreciations, entering at a low when there is blood on the streets.

It is widely believed that the upcoming halving of miner reward, while it shakes off weak miners, will cause prices to rise as the demand for the scarce asset increases and daily emission halved.

Speculators Fueled Early Mar 2020 dump down

Interestingly, new data reveals that mid-Mar drop of BTC prices—though triggered by global events and the spread of COVID-19 to Europe and the United States, was precipitated by speculators who within the last six months had moved their coins between different addresses.

“Most of the Bitcoin that were sold in past 2 weeks during the crash belong to addresses that have movements of BTC in the past 6 months. HODLers are not selling, traders and speculators who bought at 9k – 10k are the ones who are panic selling. In other words, weak hands.”