- Addresses with 10 – 1000 BTC surged in recent months, reaching 2020 levels for the first time
- Similarities in the price level of BTC have been observed in 2020 and 2022
The number of people who own 10 – 1000 Bitcoin [BTC] increased significantly in recent months. BTC also showed some volatility, mainly due to events surrounding the cryptocurrency industry.
Some observers stated that Bitcoin and cryptocurrencies were “dead” due to price volatility. Judging by this statistic, BTC probably gained more users.
Read Bitcoin [BTC] Price forecast 2023-2024
Similarity and possible reasons for the increase
Sanitation reported a dramatic increase in numbers Bitcoin addresses with 10 – 1000 BTC as of December 11. According to the data, addresses have risen to nearly 151,000, a number last seen in 2020. The chart also revealed a steep decline after the 2020 peak.
🐳🦈 There are now 151,080 addresses with between 10 and 1,000 $BTC. After a huge drop that started in December 2020, these addresses have increased significantly over the course of 2022 #Bitcoin gradually become more affordable. https://t.co/5rdAno5SKy pic.twitter.com/uahECloHyR
— Santiment (@santimentfeed) December 11, 2022
The similarity in the price of BTC at each stage was an interesting observation that could also be gleaned from Santiment’s chart. The price of BTC was around $18-19k in 2020 when the number of addresses was about the same level as today. BTC is currently valued at around $17,000. Is there a reason for this corresponding growth?
The similarities can be explained by a closer look at the graph. The main factor would be an expected appreciation of Bitcoin. There was a decrease in positions, which happened at the same time as the price of BTC rose.
Investors who bought at a lower price sold their assets when the price rose. This could suggest that the current address increase was a harbinger of an expected BTC bull run.
Bitcoin in the daily time frame
Bitcoin [BTC] traded above $45,000 in late March and early April 2022, according to the daily time frame. However, it was trading at around $16,900 at the time of writing, indicating a clear massive drop. Plotting the price range showed that the asset was down 60% in the time frame.
The short moving average (yellow line) on the price chart also served as resistance. With the yellow line in its current location, the initially observed resistance was around $18,000. However, in the long run, perceived resistance has been between $21,000 and $25,000.
While there have been no clear higher highs in the current price movement, a breach of current resistance levels could trigger a BTC rally. Once the bull run starts, the price may rise to where it was before, around $40,000, and even higher.
In addition, the Bollinger Bands (BB) contracted, indicating less price volatility for BTC. However, the contraction could also be a sign of approaching volatility.
Upcoming events that may affect BTC
These upcoming events can affect the price of BTC due to the correlation between traditional markets and past price movements. The Consumer Price Index for November will be announced on December 13; the next day, the Federal Reserve announces its current interest rate.
While it is believed that the total number of addresses may change, the effects of these events have yet to be discovered.