Key Factors That Bitcoin Needs To Keep Bullish Momentum
Amid the bearish impression circling the cryptocurrency market lately, a prominent crypto analyst has revealed a recent trend for Bitcoin (BTC), which will help bolster the continuation of its price rally.
What Bitcoin Needs To Sustain And Expand Its Rally
A cryptocurrency analyst known as Ali recently shared this crucial information with the entire cryptocurrency community on December 18, 2023. The analyst took to X (formerly Twitter) to highlight what Bitcoin needs to maintain its upward trajectory.
Ali said the crypto asset experienced a dip in network growth over the past month, which raised concerns about the stability of BTC’s recent price move to $44,000.
He added that creating new Bitcoin addresses must expand to guarantee a robust continuation of its rally. This will provide the much-needed support for the crypto asset to maintain its bullish momentum.
The post read:
There’s been a noticeable dip in #Bitcoin network growth over the past month, casting doubt on the sustainability of $BTC’s recent move to $44,000. For a robust continuation of the bull rally, it’s crucial to see an uptick in the number of new $BTC addresses. This would provide the needed support for sustained bullish momentum.
BTC needs further investor and institutional support to sustain its rally. A chart accompanied the crypto analyst’s X post to support his projection further.
This prediction means further corrections may be a scenario for the digital asset. This is because of the discrepancy between the creation of new addresses and the current price increase of Bitcoin.
Nonetheless, approving a Bitcoin Spot exchange-traded fund (ETF) in the US might create an avenue for more institutional investment, thereby reversing this trend.
As of the time of writing, BTC was trading at $40,980, indicating a decrease of over 2% in the past 24 hours. According to CoinMarketCap, its market capitalization decreased by the same percentage in the past 24 hours.
Digital asset prices have increased by 146% in the last year, demonstrating amazing growth throughout this timeframe. Its performance over the same year exceeded 73% of the leading 100 crypto assets, putting it among the top performers.
The Crypto Asset Fell Below Its Crucial Supply Area
Ali has also shared another post on X showing that Bitcoin has witnessed a dip below its key supply zone. The analyst pointed out that the zone ranges from $41,200 to $42,400, of which the asset has recently fallen below this range.
He added that 1.87 million addresses in this region have accumulated about 730,000 BTC. With this decline, these holders may sell the token to reduce losses.
The crypto analyst also highlighted a potential decline to the next demand zone ranging from $37,500 to $38,700. Meanwhile, about 1,28 million addresses in this region have accumulated 553,000 BTC tokens.
Featured image from iStock, chart by Tradingview.com
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