BTC Network Growth Stagnates, Rally’s Sustainability Questioned

• Bitcoin’s price surge faces uncertainty as new address creation stalls, raising questions about rally sustainability.
• Whales accumulate BTC despite network growth slowdowns, while exchange inflows hint at mixed sentiments.
• Regulatory pressure and technical challenges complicate Bitcoin’s market outlook, making the future uncertain.

Despite the recent surge in Bitcoin’s price, reaching a high of $44,000, there’s a growing concern over the stagnation in Bitcoin network growth. An increase in new addresses typically supports a healthy and sustainable bull rally in the cryptocurrency market. However, recent data suggests a noticeable dip in new Bitcoin address creation, casting doubts on the longevity of the current price uptick.

BTC Whales Accumulate as New Addresses Decline

Interestingly, while the overall network growth shows a slowdown, Bitcoin whales seem undeterred. Data from IntoTheBlock indicates that these large holders have accumulated over 22,000 BTC in the past week. Concurrently, the Bitcoin (BTC) price has fallen in the last 24 hours after failing to break beyond the intraday high of $42,395. The bears were still in charge at press time, with the BTC price trading at $41,037, a 2.07% drop.

This accumulation occurs in the face of the Bitcoin price experiencing minor corrections and fluctuations. However, a deeper analysis reveals a nuanced scenario. Santiment’s BTC supply distribution chart points to sell-offs at certain intervals despite these large addresses’ overall increase in holdings.

Exchange Inflows Signal Mixed Sentiments

Adding to the complexity of the market’s current state is the increased inflow of Bitcoin to exchanges. Analysis from CryptoQuant suggests a recent uptick in Bitcoin moving to various exchanges, a typical indicator of heightened selling activity. This trend aligns with the fluctuating patterns of whale accumulations and disposals. The exchange netflow is around 805 BTC, a factor that might be contributing to the need for more impact on the price trend despite ongoing accumulation by whales.

Moreover, crypto analyst and trader Michäel van de Poppe has weighed in on the current Bitcoin trends. Van de Poppe suggests that we may be nearing the end of Bitcoin’s current uptrend, proposing that a price range of $48,000 to $51,000 could represent a peak before a correction occurs. His insights are particularly relevant given the mixed signals in the market, with accumulation by whales on the one hand and increased exchange inflows on the other.