Bitcoin's Active Addresses Dive, Raising Bullish Concerns
Active Bitcoin addresses reach a six-month peak, fuelling speculation about potential market surge towards $100,000.
In a curious twist, Bitcoin's network activity is booming as its price hesitates to follow suit. The cryptocurrency saw a surge in active addresses, recording its highest network activity in six months, with 925,914 active addresses in a single day, as BTC was perched at $96,951. But instead of soaring, Bitcoin plummeted nearly 2%, sending tremors through the crypto world.
This odd behavior isn't a one-off. A similar pattern emerged in early March when active addresses spiked to 860k, only for Bitcoin to retreat 7% as activity declined soon after. It seems the crypto market is displaying a bearish divergence between on-chain activity and price movement.
Digging deeper, our research suggests that the surge in active addresses wasn't driven by spot demand but rather speculative positioning. On the same day the active address count surged, around 5,000 BTC worth a staggering $484 million flowed into derivative exchanges. This move signaled that traders were positioning themselves for short-term gains through leveraged trading, rather than long-term investment.
Is Bullish Fervor Waning as Bitcoin Hits a Roadblock?
The last time we witnessed genuine spot demand for Bitcoin was on April 29, when net outflows across all exchanges peaked as Bitcoin soared to $94,280. Since then, despite reclaiming key resistance levels, net flows have remained remarkably flat, hinting at potential bullish fatigue.
Compounding this, Bitcoin's active addresses plunged from a six-month high on May 2 to a two-week low of 618k the following day. This drop highlights a lack of enthusiasm among traders to engage in spot buying near the $97k level, casting doubt on the market's ability to sustain the bullish trend.
With the $100k target looking increasingly speculative, a question looms large: Is the crypto market running out of FOMO (Fear Of Missing Out)?
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Ethereum Community Upset Over Solana's Centralization Fix
Meanwhile, over in the Ethereum camp, a buzz has erupted over Solana, a rival blockchain, swiftly addressing a critical bug. Some in the Ethereum community are crying foul, accusing Solana of being centralized due to its fast-paced response.
Pi Network Takes a Giant Leap Forward
Finally, Pi Network made waves with Banxa's Know-Your-Business (KYB) approval, unlocking 100+ countries for the cryptocurrency. The move paves the way for Pi Network to expand its reach, potentially tapping into a vast new market of users.
- In spite of Bitcoin's active addresses reaching a six-month high, the crypto's price plummeted, signaling a bearish divergence in the crypto market.
- The surge in active Bitcoin addresses might not be due to spot demand, as around 5,000 BTC worth $484 million flowed into derivative exchanges.
- The drop in Bitcoin's active addresses from 925,914 to 618k casts doubt on the market's ability to sustain the bullish trend, showing potential signs of bullish fatigue.
- Solana, a rival blockchain, has swiftly addressed a critical bug, causing a stir in the Ethereum community, who are accusing Solana of being centralized due to its fast response.
- Pi Network is set to expand its reach following Banxa's Know-Your-Business (KYB) approval, potentially tapping into a vast new market of users in over 100 countries.
- Investing in crypto like Ethereum and Bitcoin requires understanding the technology behind them, the market's current trends, and the potential risks and rewards.
- Join our online survey for a chance to win $500 USDT, demonstrating our commitment to engaging with our community and understanding market sentiments.
