Rising Bitcoin Addresses Signal Potential Market Recovery

٢٥ سبتمبر

This chart shows the relationship between Bitcoin's price (in gray) and the number of new BTC addresses (in purple). Historically, the number of new addresses tends to increase ahead of major price peaks, which often serves as a leading indicator of the market’s upward momentum. Conversely, as price tops are reached, the number of new addresses typically begins to decline, signaling an impending price correction or market top.

Key observations from the chart:


Address Growth and Price Correlation:

• There is a clear correlation between the surge in new BTC addresses and the sharp price increases that precede each cycle's peak.
  
• In previous market cycles, as shown on the chart, a sustained rise in new addresses often leads to significant price appreciation. However, once the new address count peaks and starts declining, the market generally approaches a top, after which corrections follow.
  

Current Trends:

After a significant decline in both price and new addresses, we see that since June 2024, the number of new BTC addresses has started to rise again. This could indicate a potential recovery phase.

The uptrend in new addresses suggests that interest in Bitcoin is growing, and this metric could signal the start of a new bull cycle, though we are still in the early stages.

Looking Forward:

• The recent bottom in new addresses (marked within the red circle) and subsequent uptick since June could be seen as a positive indicator for potential future price increases.
  
• If this trend continues to rise, it could suggest that a broader market recovery is underway, with increased retail interest driving demand for Bitcoin.
  
• Investors may want to watch the behavior of new addresses closely, as any plateau or drop in the number of new addresses during a price surge could signal the nearing of a market top.