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What are the factors that can trigger the rise of Bitcoin?

  • Bitcoin has been striving to reach and maintain the price level of $30,000, which has been a difficult target to achieve in recent weeks.
  • Throughout the month of May, the daily active addresses remained consistently below 1 million. However, in June, a positive development occurred and this metric managed to exceed 1 million in seven different instances.
  • Despite the seemingly unimpressive price movement of Bitcoin, there has not been a significant increase in exchange flow. The net flow metric indicated fluctuations between inflows and outflows in the past few days.

While the battle of Bitcoin bulls to push the price upwards continues, there has been a significant decrease in the daily active address count on the network; What will happen now?

Decrease in Daily Active Address Count in Bitcoin

Bitcoin (BTC) (39)

Bitcoin has been striving to reach and maintain the price level of $30,000, which has been a difficult target to achieve in recent weeks. While this situation can be attributed to rapid selling pressure, another important factor may shed light on the slow price movement.

Beyond the price movements of Bitcoin that usually catch observers’ attention, an important metric can significantly impact its value: “active address count”. This on-chain activity revealed by Santiment’s daily active address metric plays a key role in uncovering underlying dynamics.

Upon closer examination of this metric, a significant decrease in the daily active address count on the network is clearly observed. At first glance, the full extent of this change may not be apparent, but a detailed analysis provides a clearer picture. Throughout the month of May, the daily active addresses remained consistently below 1 million.

bitcoin-daily-active-addresses

However, a positive development occurred in June, and this metric managed to exceed 1 million in seven different instances. As June progressed, this upward trend slightly diminished, and the count only surpassed the 1 million threshold six times.

At the time of writing this article, the daily active address count was approximately 239,000, indicating a significant decrease. Nevertheless, the 30-day active addresses metric showed a promising upward trend and the total active address count surpassed 18 million. This upward movement can be observed until the beginning of June, but progress has been quite stagnant recently, as shown by the graph.

How did the trend of Bitcoin shape?

When analyzing the trend of Bitcoin on a daily time frame, May was a relatively eventless month for this asset. The graph showed a period of stagnation without any significant price movement. Additionally, no trading session ended with a significant increase or decrease of 5%.

However, as June arrived, the scene changed dramatically. June witnessed more excitement, and the Bitcoin price managed to reach the long-awaited $30,000 price range. In early July, the price attempted to surpass the $30,000 mark, but unfortunately, it could not sustain this upward momentum. As the last weeks of July progressed, the price trend became calmer and struggled to rise further.

The $30,000 price range has become a challenging psychological resistance level against the rise of Bitcoin. At the time of writing this article, Bitcoin was trading at around $29,280, showing a slight increase of less than 1%.

Bitcoin flow is progressing normally

Despite the seemingly unimpressive price movement of Bitcoin, there has not been a significant increase in exchange flow. The net flow metric at CryptoQuant indicated fluctuations between inflows and outflows in the past few days. Interestingly, the recent trend saw more inflows except for July 30. As of this writing, there were around 590 inflows and over 200 outflows.

Bitcoin-Exchange-Netflow-Total-All-Exchanges

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Lucien Renard
Lucien Renardhttps://en.coinotag.com/
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.
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