Currently, there is almost no reason to be optimistic about bitcoin. The price is holding steady near the $20,000 level, with various on-chain signals turning negative. Even though a further downside is predicted in the long-term market, but there may be some respite in the coming week. There have been some signs of a rebound, which could fuel a rally over the weekend.
bitcoin address activity is on the rise
According to Sentiment, there has been an increase in the number of bitcoin unique addresses active within the ecosystem. This is encouraging for a stronger bounce, as a comparable gap was last seen in December 2020. Simultaneously, BTC surpassed its 2017 record of $20,000.
Coinbase withdrawal was also seen as a positive sign among bitcoin whales. At the time of writing, average BTC withdrawals on Coinbase have hit a nine-year high.
Markets witness another collapse
Nevertheless, it is worth noting that the overall average deposit was also significantly higher. Conversely, sales of miners have soared, and many experts have predicted a collapse phase driven by miners. Looking at this objectively, for the time being, the price of BTC may react as follows.
In this circumstance, the phrase “moonshot” may be overused. However, a retest of the above $23,030 breakpoint will still be appreciated. BTC price is now rallying to the upside (yellow line), however, the situation will be bright if the currency rises above the said hurdle. After a strong bounce, a decline in support could push the price below $30,000.
Even if the currency is still down about 50% from its all-time peak, losses could be short. Traditionally, the $17,000-$20,000 price level has been one of the most actively traded areas in bitcoin existence.
Bitcoin could change anytime this week, and the weekend could be an important moment to formulate trading ideas for the major digital asset. However, it is interesting to note that the market is relatively negative, and risk management is essential for traders.