According to data from CoinMarketCap, Bitcoin (BTC) appears to have finally found some stability in September, recording a price gain of nearly 13% in the last week. Interestingly, crypto analyst Burak Kesmeci has unveiled a certain condition behind this price rise which could prove vital in initiating a market bull run.
Bitcoin Bulls Dominance Strengthens, Network Address Nears 350,000 Level
On Friday, Kesmeci shared via an X post detailing how the number of new Bitcoin addresses per day is a strong indicator of price movement. With respect to recent price gain, the analyst noted that new Bitcoin addresses have been on the rise reaching 330,000 with a potential of touching the critical threshold of 350,000.
Kesmeci explains the pivotal status of 350,000 stating that whenever the number of new Bitcoin addresses moves above this level, it indicates that bulls are gaining market influence and the price trajectory is upward. Alternatively, when new BTC addresses fall below this threshold, it could represent a price correction or the beginning of a bearish season.
For the latter case, the crypto analyst explains that a straight decline in new BTC addresses to below 250,000 would result in a full-fledged bearish market as previously seen on three occasions in the last six years i.e. from $19,000 to $6,000 in 2018, from $64,000 to $30,000 in 2021, and from a record $74,000 to $49,000 in 2024.
However, the recent rise in new Bitcoin addresses which had dipped below 200,000 to above 300, 000 has been largely impressive. Kesmeci postulates that if this metric reaches above 350,000, especially following the US Federal Reserve meeting next week, BTC investors could be in for a “delicious” period.
Related Reading: Bitcoin Recovers After CPI Data Drop, But Is It Sustainable?
BTC Spot ETF To Threaten Network Growth?
The Bitcoin spot ETF market is one of the most exciting crypto developments in 2024. It is widely believed that these exchanged-traded products will drive Institutional demand for Bitcoin in the long run. While such notions may be true, Kesmeci has expressed concerns about these ETFs hampering network growth.
This is because a single ETF could hold BTC for several investors who would have created individual network addresses if they invested in Bitcoin directly. Therefore, there is a need for constant new waves of retail investors even in the advent of ETF-driven price growth.
At the time of writing, BTC trades at $60,395 reflecting a price gain of 4.31 % in the last day. Alternatively, the asset’s daily trading volume is down by 9.35% and valued at $30.5 billion.
