Non-Zero Bitcoin (BTC) Addresses Reach An All-Time High Suggesting Strong Accumulation

By Bhushan Akolkar
Published November 23, 2021 Updated November 23, 2021
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Bitcoin has seen another 4% dip within the last 24 hours, taking down the global crypto market capitalization with it.

Non-Zero Bitcoin (BTC) Addresses Reach An All-Time High Suggesting Strong Accumulation

By Bhushan Akolkar
Published November 23, 2021 Updated November 23, 2021

Bitcoin has been under major pressure over the last week and facing strong resistance currently at $60,000 levels. As of press time, Bitcoin is trading 1% down under $57,000 with a market cap of $1.075 trillion.

Although Bitcoin remains under pressure its on-chain fundamentals signify signs of major strength and accumulation. As on-chain data provider Glassnode explains:

The number of #Bitcoin addresses with a non-zero balance has reached a new all-time high of 38.76 million addresses. The previous high of 38.7 million was set seven months ago on April 23rd, taking 213 days to fully recover.

Courtesy: Glassnode

On-chain data provider Santiment reports that despite Bitcoin trading under pressure, the Bitcoin supply has been moving off-exchanges lowering the sell-off risks. Furthermore, the USDT supply on the exchanges has been increasing while indicating strong buying power.

During the recent price correction, Bitcoin’s short-term holders have been selling as well. The Bitcoin short-term holders have been taking profits at the highs while capitulating at the lows. As Glassnode explains, there’s a 15% drop in the Bitcoin supply in profits and is currently in the bull/bear transition zone.

Courtesy: Glassnode

Bitcoin Short-Term Holders Responsive to Price Action

Furthermore, Glassnode adds that short-term holders have been the most responsive to price actions. It notes:

Short term holders (STH) are most responsive to price action due to a combination of having a higher relative cost-basis, a higher time preference, and potentially a lower degree of conviction in the asset. This week’s price action was no exception, as STHs played a role in setting both the highs and the lows.

On the other hand, the Bitcoin funding rates on Binance have neutralized during the broader market correction. On-chain data provider Santiment reports that it usually leads to strong bounceback.

All on-chain indicators suggest that the BTC price is poised for the next rally. Thus, it could be a good buying opportunity as of now.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
820 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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