According CoinMarketCap dataIt seems that Bitcoin (BTC) has finally found some stability in September, recording a price increase of almost 13% in the past week. Interestingly, cryptocurrency analyst Burak Kesmeci has revealed a certain condition behind this price increase that could prove vital in starting an uptrend in the market.
Bitcoin bulls’ dominance strengthens as network direction approaches 350,000 level
On Friday, Kesmeci shared via a Publication X The analyst details how the number of new Bitcoin addresses per day is a strong indicator of price movement. Regarding the recent price surge, he noted that new Bitcoin addresses have been increasing and have reached 330,000 with the potential to touch the critical threshold of 350,000.
Kesmeci explains the fundamental status of 350,000 by stating that as long as the number of new Bitcoin addresses If it moves above this level, it indicates that the bulls are gaining influence in the market and the price trajectory is upward. Alternatively, when new BTC addresses fall below this threshold, it could represent a price correction or the start of a bear season.
For the latter case, the crypto analyst explains that a direct drop in new BTC addresses below $250,000 would result in a full-blown bear market as previously seen three times in the past six years, i.e. from $19,000 to $6,000 in 2018, from $64,000 to $30,000 in 2021, and from a record high of $74,000 to $49,000 in 2024.
However, the recent surge in new Bitcoin addresses, which had dipped below 200,000 and now exceed 300,000, has largely been impressive. Kesmeci posits that if this metric breaks above 350,000, especially after the US Federal Reserve meeting next week, BTC investors could be in for a “delicious” period.
Related reading: Bitcoin Rebounds After CPI Data Drop, But Is It Sustainable?
Will BTC Spot ETF Threaten Network Growth?
He Bitcoin Spot ETF The cryptocurrency market is one of the most exciting crypto developments in 2024. It is widely believed that these exchange-traded products will drive institutional demand for Bitcoin in the long run. While these notions may be true, Kesmeci has expressed concerns about these ETFs hindering the growth of the network.
This is because a single ETF could hold BTC for multiple investors who would have created individual network addresses if they had invested in Bitcoin directly. Therefore, there is a need for constant new waves of retail investors even in the face of the advent of ETF-driven price growth.
At the time of writing, BTC is trading at $60,395, reflecting a 4.31% price increase over the past day. Moreover, the asset’s daily trading volume is down 9.35% and is valued at $30.5 billion.
Featured image from Investopedia, chart from Tradingview
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