Bitcoin New Wallet Addresses Reaches New High Amid Market Downturn
Bitcoin records massive new wallet creations in thousands even as its price hovers in the bearish trend. However, on-chain data negates the crypto asset's market value as Bitcoin approached the 25K level when the new addresses were created.
On-chain Data Reveals New Wallet Addresses Created in One DayAli Martinez, a notable personality in the crypto community, shared a remarkable piece of information on his Twitter account. According to his tweet, on-chain data reveals the Bitcoin network recorded 717,331 new wallet addresses created on September 9, 2023.
This is an impressive success within the Bitcoin network regarding new wallet addresses being created on a particular day. History repeating itself as the current record is the highest since five years after Bitcoin recorded a milestone of 800,180 new addresses on December 14, 2023.
Interestingly, the astonishing event happened despite Bitcoin struggling with negative market sentiment. According to Alternative.me, a crypto market sentiment platform, the fear and greed index in the global crypto market is at 40, suggesting fear and uncertainty among crypto investors.
This milestone achievement implies that Bitcoin enthusiasts are bagging more quantities ahead of the forthcoming Bitcoin halving in 2024. It also implies that new investors have violated the market situation to explore the Bitcoin network.
Despite Bitcoin's Recent Astounding Record, the Crypto Asset Slumps Toward $25KBitcoin's impressive performance in its on-chain metrics did not align with its market value. The price of BTC drops and nears the $25 thousand level despite the new wallet creation milestone.
However, Bitcoin trades at $26,191 at 11:59 AM EST today, September 12, with a 24-hour price gain of 4%. Also, Bitcoin has recovered nearly 2% of its past week's gains. Furthermore, technical indicators suggest a potential bullish recovery underway for Bitcoin.
What's Investors' Hope If Bitcoin's Price Declines?
From the technical chart above, the BTC shows a growing buying pressure in the asset market, evident in the formation of the last green candlestick. Again, some technical indicators used to analyze Bitcoin's market show that BTC is moving toward the upper band of the Bollinger indicator.
This suggests a bullish momentum building within Bitcoin's market and aligns with the growing buying signal from the green candlestick in the daily chart above.
If the bulls sustain the bullish momentum, more investors will be attracted to the market, forcing Bitcoin's value to hit the Upper Bollinger band before recording a price retracement.
Moreover, the Relative Strength Index is at 47.45 in the neutral zone and moving upward toward the overbought region, indicating increased buying momentum.
Furthermore, Bitcoin's Moving Average Convergence/Divergence is slightly above the signal line, with green histogram bars forming.
At the current prices, bullish investors are hurrying to accumulate more tokens in anticipation of the next bull run. This market condition could trigger a short-term rally for Bitcoin before the bulls are ready for a lengthy ride.
If buyers sustain ongoing momentum, Bitcoin could aim for the $27,000 price level in the coming days.
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