Bitcoin on chain analysis: number of new addresses reaching ATH

The number of Bitcoin transactions is increasing, but is still disproportionate to the price increase. On the other hand, the number of addresses with non-zero balances is approaching a new all-time high (ATH).

Number of BTC transactions

The number of Bitcoin transactions does not always increase with price. While the number of transactions reached ATH 406,953 in December 2017, the BTC price hit ATH in April 2021.

Interestingly, the number of transactions that have achieved 3 tops is lower since the aforementioned ATH 2017 (black arrows). This means that the price increase is not supported at all by a corresponding increase in the number of transactions, although both are clearly positively related.

Since ATH in April 2021, both the BTC price and the number of transactions have decreased. The number of transactions hit an annual low of 195,248 on July 2, before recovering thereafter.

Hence, although the number of transactions is currently increasing, the number of transactions is still considered bearish compared to the price movement.

Number of BTC transactions | The source: Glass knot

Total addresses

The number of non-zero Bitcoin addresses offers a different outlook compared to the number of transactions. The index has continued to rise since its peak in 2017, hitting new ATHs around the same time as the BTC price.

However, its movement is very different from the 2014-2017 market cycle.

During the 2014-2017 cycle, the indicator crashed twice (black circle) before crashing in December 2017 (black arrow).

In the current cycle there are also 2 decreases at the end of 2020 / beginning of 2021. After the ATH set in April, however, the next step is not a sharp drop, but a very slow one, like Unify.

Therefore, the current decline after ATH is not the same as it was after the 2017 high. Note that BTC price had a longer correction period between 2018 and 2019.

Number of addresses with a BTC balance of 0 | The source: Glass knot

Enlarging the graph helps to see the movement more clearly and shows the number of addresses with non-zero balances moving to a new ATH.

Number of addresses with a BTC balance of 0 | The source: Glass knot

Address CLEARitcoin by amount

In addition, the addresses are divided according to the amount of BTC held. Consists:

• Addresses with more than 1 BTC = green
• > 10 BTC = blue
• > 0.1 BTC = purple

The number of addresses with more than 0.1 BTC credit is about to hit the new ATH. However, the number of owners lags behind with> 1 and> 10.

Therefore, small accounts in particular are driving the steady increase in the number of addresses. This is not a bullish development as the dominant small account is often seen as a sign of a market high.

However, an increase in the number of medium and large accounts could still be a sign of accumulation before the bull cycle resumes, albeit at a slower rate of increase.

BTC balance of addresses | The source: Glass knot

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Minh Anh

According to Beincrypto

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