• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
Nexo

A $12K-Retest for Bitcoin Likely On-Chain Activity Suggests

Yashu Gola by Yashu Gola
2 years ago
in Bitcoin Price
0
  • Bitcoin could hit $12,000 or break above it in the coming sessions as its on-chain activity spikes.
  • According to behavioral analysis platform Santiment, the number of daily active addresses climbed above 1 million on August 3.
  • That, as Santiment noted, validated a scope for a price rally ahead.

Bitcoin closed above $12,000 earlier this week on mounting selling pressure near the level. The cryptocurrency eventually dropped back to $10,500 only to attempt another bounce upwards of $11,000.

As the game of consolidation continues for three days in a row, Santiment believes that the BTC/USD exchange would retest $12,000 or area above the said level in the coming sessions. The behavioral analysis platform concluded by measuring Bitcoin’s flat trend against the rising number of its daily active addresses (DAA).

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

In retrospect, Active Addresses represent the number of unique addresses that send and buy cryptocurrencies actively.

If they rise, then it points to higher engagement on the cryptocurrency’s network. Coupling it with a bullish market further indicates that most of the transactions taking place across the blockchain are for accumulation.

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, crypto
Bitcoin daily active wallet addresses. Source: Santiment

Santiment predicted a similar outcome for Bitcoin as its DAA touched 1.03 million on August 3.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

That marked the third time since July 1, when the number of active addresses spiked over 1 million. Last time it happened before July was in December 2017, the month that witnessed Bitcoin establishing its all-time high at near $20,000.

“With this metric continuing to push higher, it will function as great validation that Bitcoin’s price is justified in retesting the $12,000 range sooner rather than later – and potentially beyond,” tweeted Santiment.

Verifying Bitcoin DAA-Price Correlation

To many, DAA is not an accurate indicator to predict Bitcoin’s future price movements. Anthony Sassano, the co-founder of EthHub, noted in June that the number of active Bitcoin addresses remains artificially inflated because of the cryptocurrency’s UTXO model.

In retrospect, UTXO is a backronym for Unspent Transactions Output. The model prompts users to use new addresses with each transaction.

But traders have primarily ignored these limitations as of late. It was visible in the Bitcoin’s 25 percent price jump after its DAA spiked above 1 million on July 24. Nevertheless, a similar occurrence on July 1 went unnoticed as BTC/USD just spiked by 3 percent in the weeks later.

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, crypto
Bitcoin price spiked by 25 percent following its DAA close above 1 million. Source: TradingView.com

Instead, the Bitcoin network experienced an increase in transactional activity on rising bids for safe-haven assets against the depreciating bond yields and the US dollar. The cryptocurrency was merely reacting to public speculation. It says that Bitcoin would provide a safety net to investors against inflation.

Bitcoin’s traditional rival, gold, also jumped higher on similar sentiments, touching its all-time high above $2,000 per ounce only yesterday.

Macro Support to Continue

A CNBC report published on Wednesday confirmed that the Federal Reserve would maintain its interest rate near zero to keep the US economy afloat through the COVID pandemic. It further confirmed that the central bank would push the inflation rate to its benchmark target of 2 percent.

That, in the long-term, further confirms a rising demand for safe-haven assets. As a result, Bitcoin could hit $12,000 regardless of its DAA readings. Some, including Fundstrat’s Thomas Lee and Galaxy Digital’s Michael Novogratz, even see the cryptocurrency breaking above $20,000, its record high to date.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

Bitcoin

Bitcoin Drops To $26K As Crypto Sell-Off Continues – Will The Slide Approach $25K?

1 week ago
Bitcoin price

Bitcoin Price Nosedives As Russian Missiles Strike Ukraine’s Cities

3 months ago
Crypto mining

Former Soviet Republic Is Primed For Crypto Mining, Despite Its Burgeoning Power Deficit

3 months ago
European Markets Regulator Urges The EU To Ban Proof-of-Work Bitcoin Mining

European Markets Regulator Urges The EU To Ban Proof-of-Work Bitcoin Mining

4 months ago
Bitcoin mining stocks, a coal mine

Bitcoin Mining Stocks Beat BTC Two-To-One in 2021 ROI

6 months ago
Price, The Bitcoinist Book Club logo

Bitcoinist Book Club: “The Bitcoin Standard” (Chapter 6, Part 1: Price)

10 months ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.