Summary:
- The number of active Bitcoin addresses recently hit an all-time high of 1.34 million
- This amount is higher than the 1.29 million experienced on December 14th, 2017
- Bitcoin is attempting to turn the $40k price area into support
- BTC is in overbought territory but $50k looks like the next stop
- A push above $50k is probable for Bitcoin
The number of active Bitcoin addresses recently hit an all-time high of 1.35 million. This number was achieved earlier this week when Bitcoin exceeded the $37k price ceiling. This impressive milestone was highlighted by the team at Longhash who also pointed out that the last all-time high of active Bitcoin addresses stood at 1.29 million and was set on December 14th, 2017. They also shared the following chart courtesy of Coinmetrics, demonstrating the increment of Bitcoin active addresses.
Bitcoin is Attempting to Turn $40k into Support
At the time of writing, Bitcoin is trading at $40,800 in what looks like an attempt to turn the $40k price into support. Bitcoin has also turned the following price areas into short term support zones that should hold if there is a correction in the pipeline.
- $38,600
- $37,700
- $36,300
- $35,750
Bitcoin Will Most Likely Push Higher
From a technical analysis point of view, the weekly BTC/USDT chart below shows that Bitcoin has been in overbought territory, since breaking the $20k price ceiling.
Also from the chart, it can be observed that Bitcoin was also in overbought territory from late 2016 leading into early 2017. The orange arrows above, highlight the first time the weekly MFI and RSI’s crossed into overbought territory during the 2016/17 bull cycle. The two indicators would continue being ‘overbought’ for the better part of 2017 up until early 2018.
Bitcoin’s weekly MFI and RSI also moved into overbought territory in late 2020 and early 2021. Using the 2016/17 cycle as a guide, and if history repeats itself, the current scenario could foreshadow that Bitcoin has at least 12 months of active bullishness before any gut-wrenching pullback such as the one witnessed in early 2018.
As with all analyses of Bitcoin above $20k, traders and investors are reminded that BTC’s current price movement is literally uncharted territory. Therefore, using low leverage and stop losses is advised when going long on the various derivatives platforms.
