Bitcoin continues to trade above $10k today and the king coin is trading in the green at the moment of writing this article.
As you probably know by now, the king coin declined from $12,400 to $10,000 in the past three weeks.
But there’s something interesting that has just been reported.
The number of accumulation addresses increases
Coindesk notes that the number of “accumulation addresses” has increased by 2% to 513,000, according to data source Glassnode.
“Lots of new daily buyers are coming in to absorb supply,” Su Zhu, CEO of Singapore-based Three Arrows Capital, told CoinDesk in a Telegram chat, as reported by the online publication.
The same publication also made sure to highlight the fact that the accumulation addresses are “those that have at least two incoming non-dust transfers (representing minuscule amounts of bitcoin) and have never spent funds.”
Another important issue that has to be addressed is that this metric excludes addresses that belong to miners and exchanges and the addresses that have been active more than 7 years ago, to exclude the lost coins.
The recent price drop is a typical bull market pullback
It seems that the divergence between prices and accumulation addresses is suggesting that investors view the recent price drop as a typical bull market pullback and expect prices to rise once more.
“Markets typically retrace one third or more in a bull market after local euphoria,” Zhu said, and suggested that prices could drop to as low as $8,800 and still be a “healthy target.”
Check out more of Coindesk’s analysis in their original article.
At the moment of writing this article, BTC is trading in the green and the coin is priced at $10,306.68.
The king coin is up by more than 1% in the past 24 hours.
In other news, it’s been recently revealed that the crypto critic Peter Schiff admits that he made a wrong call on Bitcoin.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
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