- Active Addresses decline mirrors 2021 bear market onset, signaling market caution.
- Bitcoin’s sideways price action contrasts past peaks, showing indecisive trading.
- Key September events could drive Bitcoin’s next price move, influencing market trends.
The current state of Bitcoin’s Active Addresses points towards a pivotal moment in the cryptocurrency market. Active Addresses, a vital metric reflecting the number of wallets participating in transactions, has historically been a gauge of market sentiment.
As per CryptoQuant data, during previous market cycles such as in 2017 and 2021, a sharp decline in Active Addresses coincided with Bitcoin’s price peaks, followed by extended bear markets. This pattern has led to the belief that decreased wallet activity often signals an impending downturn as traders become less active and “hold onto” their wallets.
In 2024, we see a similar reduction in Active Addresses, mirroring levels seen at the start of the 2021 bear market. Yet, unlike past cycles where BTC’s value plummeted after reaching its peak, this market is marked by a prolonged period of stability within a broad range. This sideways movement contrasts with the typical sharp decline observed at the end of a bull market.
Market participants seem to be adopting a wait-and-see approach, influenced by several external factors, including the potential impact of Bitcoin spot ETFs, the upcoming U.S. presidential election, and speculation around interest rate cuts.
Read also: Bitcoin’s September Curse: Can 2024 Be Any Different?
The reduction in Active Addresses during this period should be seen not as the end of the current cycle but rather as a wait-and-see phase. Investors are cautiously observing the market, likely waiting for a clearer signal before re-entering.
One of the catalysts for more activity could be the macroeconomic developments in the U.S. in September. Among these is the Federal Reserve’s interest rate decision on September 18, which could sway investor confidence and risk tolerance.
The release of employment data and economic indices like the PPI and CPI will further influence Bitcoin’s value. These will provide insights into the health of the US economy.
Read also: Crypto Whales Are Selling, But Prices Are Rising – What’s Going On?
Moreover, political events like the upcoming presidential debate on September 10, which is expected to focus on cryptocurrency, may trigger further changes. The probable release of Binance founder Changpeng Zhao on September 29, also adds to the uncertainty, which could impact the broader crypto market.
At publication, BTC value is $59,185.79, with a 1.44% rise in the last day. The weekly RSI indicates a neutral market, while the daily MACD suggests a possible short-term bearish trend.
The BTC Total Liquidations Chart shows shifts in liquidation volumes, reflecting periods of market volatility. These liquidation spikes often correlate with Bitcoin’s price movements, emphasizing the impact of price changes on market behavior.
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