Bitcoin upholds support at $36,000 but increasing network activity, especially in daily active addresses is an indication of a strong and healthy user base.
Published 17 hours ago
The bull market is still in progress, with Bitcoin (BTC) price up 25.5% since the breakout in October. The largest crypto rallied and retested resistance at $38,000 but as expected a correction followed possibly triggered by profit-booking activities.
#BTC Bull Market Progress:
▓▓░░░░░░░░ 27.5%$BTC #Crypto #Bitcoin pic.twitter.com/rkc6hnWdaF
— Rekt Capital (@rektcapital) November 16, 2023
Bitcoin currently trades at $36,532, down 0.6% in the last 24 hours. Traders are possibly waiting for signs of recovery or for BTC to fill their positions ahead of another breakout attempt.
Price swings to $38,000 and back to $36,000 are proving profitable to traders. However, to medium-term to long-term investors, they are merely market doldrums or consolidation which could pave the way for gains above $40,000.
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Bitcoin Price Holds Support At $36,000 As Bulls Eye $50,000
The Relative Strength Index (RSI) reveals that sellers have the upper hand amid a correction of the trend from highs in the overbought region at 87 to the current level at 62.
If bulls fail to arrest the bearish situation by upholding support above $36,000, it would be difficult to rule out a longer retracement, likely to be occasioned by Bitcoin price seeking liquidity at lower levels.
The fact that BTC price is trading within the confines of an ascending trendline, shows that bulls will have several opportunities to force their hand and keep the uptrend going.
The middle boundary of the channel would be the first major encounter of a significant support area. This region has helped to uphold the uptrend since the breakout above $33,000.
However, if broken investors may want to prepare for more losses targeting support at the same $33,000.
On the upside, the seller congestion zone between $38,000 and $40,000 is the one single barricade standing in the way of Bitcoin soaring to $50,000 before the year-end.
The bullish crosses formed by the 50-day Exponential Moving Average (EMA) flipping above the 100-day EMA and the 200-day EMA intensify the bullish grip. In other words, the golden crosses encourage traders to keep betting on Bitcoin longs while shunning short positions.
A successful breakout above $40,000 is required to confirm the bullish outlook, especially for traders and investors sitting on the sidelines.
Bitcoin Leads With The Number of Active Addresses
The uptick in Bitcoin price has resulted in a massive increase in network activity.
According to blockchain data company IntoTheBlock, Bitcoin is “leading with 960,000 daily active addresses” as the largest crypto “continues to assert dominance” in the market.
The total market cap has surged to $1.41 trillion with Bitcoin accounting for 50.9% of the entire crypto market value, data by CoinMarketCap shows.
Our Layer 1 (L1) Comparison Perspective offers a detailed analysis of leading layer 1 blockchains, focusing on key on-chain metrics.
Currently, the daily active addresses, a key indicator of network utilization and user activity, show an interesting hierarchy:
1⃣Bitcoin:… pic.twitter.com/6DpllQla5t
— IntoTheBlock (@intotheblock) November 16, 2023
Litecoin (LTC) is coming up as another worthy contender in terms of network activity. IntoTheBlock reveals that the number of activity addresses had increased to 797,000. This is a bullish signal for LTC as it shows a strong and engaged user base.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/bitcoin-price-prediction-as-bull-market-intensifies-network-activity-will-btc-hit-50k-next/