As per CoinMarketCap data, Bitcoin (BTC) seems to have finally achieved a level of stability in September, showing a price increase of nearly 13% over the past week. Notably, crypto analyst Burak Kesmeci has revealed a specific condition associated with this price increase that may be crucial for triggering a market bull run.
The Strengthening of Bitcoin Bulls and the Approach of 350,000 Network Addresses
On Friday, Kesmeci shared insights through an X post highlighting the significance of daily new Bitcoin addresses as an indicator of price trends. In light of the recent price surge, the analyst observed that new Bitcoin addresses have climbed to 330,000, with the potential to reach the crucial milestone of 350,000.
Kesmeci elaborates on the importance of the 350,000 mark by stating that when the number of new Bitcoin addresses exceeds this level, it signals that bulls are gaining control over the market and indicates an upward price movement. Conversely, if new BTC addresses drop below this level, it could signify a price correction or the onset of a bearish phase.
In the latter scenario, the crypto analyst suggests that a direct decline in new BTC addresses below 250,000 would likely trigger a full-blown bearish market, as observed three times in the last six years: dropping from $19,000 to $6,000 in 2018, from $64,000 to $30,000 in 2021, and from a peak of $74,000 to $49,000 in 2024.
Nevertheless, the recent surge in new Bitcoin addresses, which had previously fallen below 200,000, now exceeds 300,000 and is quite remarkable. Kesmeci speculates that if this figure surpasses 350,000, particularly following the upcoming US Federal Reserve meeting, BTC investors may be poised for a “savoury” phase.
Related Reading: Bitcoin Bounces Back After CPI Data Release, But Will It Last?
Will BTC Spot ETF Impact Network Growth?
The Bitcoin spot ETF market is one of the most exciting developments in the crypto space for 2024. It is widely anticipated that these exchange-traded products will fuel institutional demand for Bitcoin over time. While these expectations may hold some truth, Kesmeci has raised concerns regarding these ETFs potentially hindering network growth.
This is due to the fact that a single ETF may encompass BTC for multiple investors who would otherwise have created individual network addresses had they opted to invest in Bitcoin directly. Consequently, there remains a necessity for continuous new influxes of retail investors, even amidst ETF-induced price increases.
Currently, BTC is trading at $60,395, reflecting a 4.31% increase over the last day. Conversely, the asset’s daily trading volume has decreased by 9.35%, with a value of $30.5 billion.
Featured image from Investopedia, chart from Tradingview
