• The number of Bitcoin wallets holding a non-zero BTC balance has hit an all-time high of 45.388 million.
• Metrics pertaining to activity on the Bitcoin blockchain have weakened in the last few days, suggesting demand weakness.
• Despite some slight weakness in certain metrics, analysts remain optimistic about the future price of Bitcoin due to its strong fundamentals.
Bitcoin Non-Zero Balance Addresses Surge
The number of Bitcoin wallets with a non-zero BTC balance continues to skyrocket, recently hitting a new all-time high of 45.388 million as per data presented by crypto analytics firm Glassnode. This is a 2 million increase since the start of 2022 and denotes that demand for Bitcoin is growing rapidly.
On-Chain Metrics Show Weakness
Despite this promising indication, other widely followed metrics pertaining to activity on the Bitcoin blockchain have weakened in recent days following Bitcoin’s failure to test $30,000 last week. These include the seven day moving average of active addresses interacting with the network, new addresses interacting with he network, and transactions taking place on the network – which are all at their lowest levels since late January. This suggests that trading volumes and overall demand for Bitcoin may be declining slightly.
Analysts Remain Upbeat About Future Price
However, analysts remain confident that any dips will be bought up and price predictions continue to remain positive given its strong fundamentals. The narratives driving its spectacular bounce from mid-March lows under $20,000 are expected to persist for some time yet and should help support prices even if they slip back towards key support at $25k in coming days/weeks.
Technical Indicators Suggest Overstretched Rally
At present however it does appear as though certain technical indicators suggest that March’s rally has become somewhat overstretched – increasing risk of a dropback towards key support in the $25k range in coming weeks/days.
Conclusion
In conclusion then while there has been some slight weakening in certain key metrics indicating activity on the Bitcoin blockchain there remains plenty cause for optimism about future price performance given its strong fundamentals and resilient nature so far this year