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Crypto News

Bitcoin Witnesses Nearly 1 Million New Non-Zero Addresses In Under A Month: What This Means For Its Price Rally?

Author

Jay Solano

Tags

Reading time

3 mins
Last update

Author

Jay Solano

Tags

Reading time

3 mins
Last update

Author

Jay Solano

Tags

Reading time

3 mins
Last update

bitcoin non-zero address

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Glassnode data indicates that the number of wallets with non-zero balances on the network decreased from roughly 44.2 million to about 43.8 million by February 23rd. However, this figure has since rapidly increased, and as of March 15th, it has surged to a new all-time high of 44.778 million.

Experts use the number of wallets associated with a Bitcoin address with a balance greater than zero as a rough indicator of the network’s uptake. More wallets with non-zero balances represent more unique network users and Bitcoin investors. Theoretically, an increase in the number of addresses with a balance greater than zero indicates more demand for Bitcoin, which should (over time) increase its value.

The number of wallets with non-zero addresses has sharply increased, but it’s not the only on-chain indicator of rising Bitcoin demand. Glassnode reports that the seven-day Exponential Moving Average (EMA) of New Addresses engaging with the Bitcoin network has been increasing since the previous summer and has reached its peak since mid-2021.

Bitcoin’s On-Chain Metrics Hint Towards A New Bull Market In The Making

Glassnode’s “Recovering from a Bitcoin Bear” dashboard, which tracks various on-chain and technical indicators, is currently showing most indicators in the green and it is expected that all eight will soon be green as well. Glassnode developed this popular dashboard to assist in determining whether Bitcoin is going from a bear market to a period of recovery/new bull market.

The Recovering from a Bitcoin Bear dashboard monitors eight indicators to determine if Bitcoin is trading above key price models, if network usage momentum is improving if market profitability is recovering, and if the USD-denominated Bitcoin wealth balance favors long-term HODLers.

Historically, when all eight indicators are flashing green, this is a strong positive sign for the Bitcoin market. Now, seven out of eight indicators are green. The above graph is tinted light blue when five of eight indications are flashing green and dark blue when all eight indicators are flashing green.

What’s In Store For BTC’s Future?

Bitcoin is consolidating near the $25,000 level as market participants ponder the future of the cryptocurrency with the largest market capitalization. Due to the recent disassociation of Bitcoin from US equities, there is a belief among some that the price of Bitcoin may continue to increase if concerns regarding financial stability in the US and other regions persist.

Bitcoin, a decentralized, autonomous peer-to-peer payments network, is considered by many as a secure alternative to the fractional reserve system based on fiat currency and centered on central banks. If Federal Reserve officials are worried that a hawkish message could further destabilize the banking system, a decisively dovish outcome from next week’s Fed meeting could also benefit Bitcoin.

The fact that Bitcoin was able to break above important long-term resistance around the $25,000 region earlier this week paves the way for a run higher towards the next resistance area near $28,000 and possibly even a test of $30,000.