Bitcoin, the leading cryptocurrency, has shown signs of stability in September with a price gain of nearly 13% in the last week, according to data from CoinMarketCap. Analyst Burak Kesmeci has revealed a critical condition behind this price rise that could potentially trigger a market bull run.
In a recent X post, Kesmeci highlighted the significance of the number of new Bitcoin addresses per day as a strong indicator of price movement. He noted that the number of new Bitcoin addresses has been on the rise, reaching 330,000 and potentially approaching the crucial threshold of 350,000. Kesmeci explained that when the number of new Bitcoin addresses surpasses this level, it signifies that bulls are gaining market influence and the price trajectory is upward. Conversely, a drop below this threshold could signal a price correction or the beginning of a bearish trend.
Kesmeci pointed out that a decline in new Bitcoin addresses to below 250,000 would result in a full-fledged bear market, as seen in previous instances. However, the recent increase in new Bitcoin addresses, which had previously dipped below 200,000 but now exceed 300,000, has been impressive. Kesmeci suggested that if this metric reaches above 350,000, especially after the upcoming US Federal Reserve meeting, Bitcoin investors could be in for a positive period.
The Bitcoin spot ETF market has been a significant development in the crypto space in 2024, with expectations that these exchange-traded products will drive institutional demand for Bitcoin. However, Kesmeci expressed concerns about ETFs potentially hindering network growth. This is because a single ETF could hold BTC for multiple investors who would have created individual network addresses if they invested directly in Bitcoin. Therefore, the continuous influx of retail investors is essential even in the face of ETF-driven price growth.
As of the latest data, Bitcoin is trading at $60,395, reflecting a daily price gain of 4.31%. However, the daily trading volume for the asset has decreased by 9.35% to $30.5 billion. The chart from Tradingview shows Bitcoin trading at $60,362 on the daily chart, indicating ongoing price movements.
In conclusion, Bitcoin’s recent stability and price gains are attributed to the increasing number of new Bitcoin addresses, which serve as a key indicator of market sentiment. The upcoming US Federal Reserve meeting and the potential for new Bitcoin addresses to surpass 350,000 could further fuel positive momentum for Bitcoin investors. Despite the positive developments, concerns remain about the impact of Bitcoin spot ETFs on network growth, emphasizing the importance of maintaining a balance between institutional and retail participation in the market.
