Cointime

Download App
iOS & Android

Update On $BTC Price & Network Trends

Validated Individual Expert

2023 has the potential to be a good year for BTC. In this analysis, I look at various long-term data and indicators. Most of the charts below come from Looknode and are supplemented by data from Buy Bitcoin Worldwide.

Let’s begin with growth in new addresses. For easier interpretation, I smoothed the chart below a bit (14-day SMA).

Since the beginning of the year, we have seen an upward trend that is characterized less by individual, large spikes and more by its sustained upward momentum.

Individual strong upward swings in new BTC addresses have mostly occurred in recent years after price crashes. Constant increases like the current one, on the other hand, were accompanied by long-lasting price increases in Bitcoin.

Let’s go into more detail and take a look at the active addresses (the chart shows 14-day SMA).

It is noticeable here that the number of active Bitcoin addresses fell slightly over 2022, apart from a few fluctuations. This changed at the beginning of 2023 and we are seeing significant and sustainable growth here.

This is underscored by the growth in addresses holding more than 1 BTC.

Throughout the past bear market, many have made use of the low prices to buy more Bitcoin. Especially just before the turn of the year, the growth of these wallets was enormous and although the prices have recently risen sharply, the momentum continues.

The changed market environment is also reflected in various Bitcoin indicators.

After spending around 6 months there, the MVRV-Z score has clearly left the bottom area (green) behind. As can be seen from the chart, there is still a lot of upside potential before we reach bubble (red) territory. It also shows that this bull cycle is still in its early stages.

The positive market development is also reflected in investor sentiment.

The Fear & Greed index is currently in the ‘Greed’ area with 58 out of 100 points. Although we still have the potential for further price increases here, it looks like a sharper price correction is definitely in the cards.

Bitcoin cycle repeat chart also indicates a correction is possible.

Bitcoin cycle repeat chart

Finally, let’s take a look at the percentage of Bitcoin investors who are currently making a profit.

Around 73% of all Bitcoin investors are currently making a profit with their investments. That sounds like a lot, but as the chart shows, the peak of a cycle is only reached at around 90%.

Let’s summarize these findings.

All on-chain macro indicators and cycle valuation metrics for Bitcoin listed in this analysis paint a positive picture.

It looks like we are clearly out of the bear market and in the early stages of the next bull cycle. Both address growth, user sentiment, and various indicators that offer orientation in the current cycle show a sustained upswing. This is fundamental — it is not an outlier, but a long-term positive trend that forms the basis of any bull cycle.

Even if the current picture is a very good one, caution should be exercised. The experience of previous cycles shows that the positive momentum can quickly rebound. In fact, the months following past bear cycles are often characterized by months of sideways momentum. As always, it is difficult to say how things will continue in the coming months and will be significantly influenced by various macro developments in the global economy and global politics.

Disclaimer: Nothing in this article is financial advice!

Read more: https://medium.com/coinmonks/update-on-btc-price-network-trends-77e8bf7e92ee

Comments

All Comments

Recommended for you

  • Cointime April 27th News Express

    1. ETH falls below $3,100

  • HKEX: Accepts BOS HashKey, Huaxia, Harvest Bitcoin and Ethereum ETFs as eligible securities for multiple counters in the central clearing system

    On April 27th, the Hong Kong Stock Exchange issued three notices, announcing the inclusion of Bo Shi HashKey Bitcoin ETF shares and Bo Shi HashKey Ethereum ETF shares, Huaxia Bitcoin ETF shares and Huaxia Ethereum ETF shares, and Jia Shi Bitcoin Spot ETF shares and Jia Shi Ethereum Spot ETF shares as Central Clearing System multi-counterparty eligible securities. It is reported that:

  • Russia’s Central Bank and Rosfinmonitoring unveil pilot of fiat-to-crypto tracking system

    According to reports, since 2023, Russia has been trying to track cryptocurrency transactions and their sources. The Russian Central Bank and the Federal Financial Monitoring Service (Rosfinmonitoring) revealed that there is currently a system that allows private banks to track the connection between fiat-based transactions and cryptocurrency business.

  • PolkaWorld: Coretime trading on Kusama has started

    On April 27th, PolkaWorld announced that Coretime trading on Kusama has begun, marking the end of the era of parallel chains. With the approval and implementation of Kusama proposal 373, the proposal will upgrade the Kusama relay chain runtime to v1.2.0 and bring Coretime functionality. Shortly thereafter, the Kusama community approved Kusmaa proposal 375 last Friday, allowing Coretime chain to begin selling Coretime. Currently, Kusama is in the Renew Period and is selling batches of Coretime.

  • Over $155 million worth of MEME will be unlocked on May 3, accounting for 31.96% of the circulating supply

    According to Token Unlocks data, 5.31 billion MEME tokens, worth over $155 million, will be unlocked on May 3, 2024, accounting for 31.96% of the circulating supply. These tokens will be unlocked and distributed to airdrops, advisors, and investors.

  • The total open interest of BTC options is $17.83 billion, and the open interest of ETH options is $8.07 billion.

    Coinglass data shows that the nominal value of unclosed BTC option positions on the entire network is 17.83 billion US dollars, which is the lowest point since February 26; the nominal value of unclosed ETH option positions is 8.07 billion US dollars, which is the lowest point since February 25.

  • Memeland: Runecoin airdrops for the Stakeland community are now complete

    On April 27th, Memeland posted on social media that their Runecoin airdrop for the Stakeland community has been fully completed.

  • USDC circulation increased by $300 million in the past week, reaching a total of $33.3 billion

    According to official data reported , as of April 25th, Circle has issued a total of 3.8 billion USDC and redeemed approximately 3.5 billion USDC in the past 7 days, with an increase in circulation of approximately 300 million US dollars. The total circulation of USDC is 33.3 billion US dollars, with a reserve of 33.5 billion US dollars, of which approximately 3.4 billion US dollars are in cash, and the Circle Reserve Fund holds approximately 30.1 billion US dollars.

  • Wu Jiezhuang, a member of the National Committee of the Chinese People's Political Consultative Conference, suggested that Hong Kong refer to IPO to provide innovative financing models for Web3

    Wu Jiezhuang, a member of the National Committee of the Chinese People's Political Consultative Conference and a member of the Hong Kong Legislative Council, wrote an article in the Hong Kong Wen Wei Po titled "Leading the Digital Economy by Adapting to the Web3 Trend". The article pointed out that developing Web3+ has both advantages and new challenges. The Hong Kong government has taken an important step in the direction of developing Web3 and the digital economy by formulating a short- to medium-term strategic development blueprint, ensuring that policies and resources are in place, and promoting the construction of Web3+ application scenarios. Focusing on Web3, establishing an international innovation financing platform can not only help Hong Kong leverage its traditional financial advantages, but also help it become a global digital technology center. It is suggested to refer to the mature mode of existing enterprises' IPOs in Hong Kong, provide an innovative financing model for Web3, and create a market trend and service competitive advantage to promote the development of the industry and attract upstream and downstream of the industry chain at home and abroad to gather in Hong Kong.

  • Bitcoin Conference to Bring Star-Studded Lineup of Speakers to Hong Kong on Dawn of Historic ETFs.

    Excitement is brewing in the heart of Asia as Hong Kong regulators pave the way for a new era of innovation with the recent approval of spot Bitcoin exchange-traded funds (ETFs). This groundbreaking development underscores Hong Kong's commitment to becoming a regulated hub for Bitcoin. At the same time, the Bitcoin Conference is bringing the best and brightest Bitcoiners from around the world to Hong Kong for Bitcoin Asia.