- The number of mini-BTC addresses has skyrocketed in the last month.
- Reading the price charts showed that buying pressure has eased over time.
Since bitcoins [BTC] The price hit the $20,000 mark again, the number of BTC addresses holding 0.1 BTC increased, data from Holy revealed.
According to the on-chain data provider, about 620,000 small BTC addresses containing 0.1 BTC or less have reappeared on the network since retaking the $20,000 price mark.
While the market remained in strictly bearish conditions in 2022, these addresses saw slow growth. However, with the unexpected bullishness since the start of the year, trader optimism has returned among this cohort of investors, Santiment noted.
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🧐 There have been ~620,000 small #bitcoin addresses that have reappeared on the network since #FOMO returned on Jan 13 when the price hit $20,000 again. These $0.1 BTC or less addresses grew slowly in 2022, but 2023 shows a return in trader optimism. https://t.co/CUAS0nV23x pic.twitter.com/wo8NBDNXs3
— Santiment (@santimentfeed) February 6, 2023
The increase in the number of BTC investors holding 0.1 BTC or less year-to-date can be attributed to fear of missing out (FOMO). Many of the mini-BTC addresses may have returned to the market to capitalize on the recent price rally and rake in profits.
Will they get the results they want?
Read Bitcoins [BTC] Price prediction 2023-24
Are you rewarded for your FOMO?
Looking at BTC’s funding rates showed that they have been positive over the past month. Still positive at press time, it has been priced at 0.008.
When an asset’s funding rates are positive, it indicates that there is greater demand for long positions than short positions, and traders holding short positions pay a fee to traders holding long positions.
Furthermore, when the funding rate is positive, it indicates that market participants expect the price of the asset to increase.
Source: CryptoQuant
BTC’s price skyrocketed in January, and as the month ended, there was a surge in BTC’s currency reserves, suggesting many holders were transferring their assets to exchanges to cash in their profits.
This was temporary, however, as the king coin’s reserve price resumed its downtrend. According to data from CryptoQuant, the currency reserve of BTC is 2.13 million BTC at press time.
A decrease in an asset’s reserve assets means there are fewer coins in circulation. With a corresponding increase in the supply of the coin outside of exchanges, its price could continue to rise.
Source: CryptoQuant
Additionally, an assessment of BTC’s Adjusted Spent Output Profit Ratio (aSOPR) revealed that many investors have sold at the current price for a profit. At press time, the aSOPR was 1.008. A value above one for a coin’s aSOPR means that more investors are selling at a profit.
Source: CryptoQuant
While BTC may be well positioned on the chain, a look at its performance on the daily chart showed that buying pressure has eased. At press time, Chaikin Money Flow (CMF) is negative at -0.01.
Moreso’s Directional Movement Index (DMI) positive directional index (yellow) was positioned in a downtrend and approaching the negative directional index (red). This indicated that buyers were beginning to lose control of the market.
Source: BTC/USDT on TradingView
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