Bitcoin analysts map out the key bull and bear cases for BTC’s price action
Research has detailed Bitcoin’s recent record-low volatility and while traders expect an eventual price breakout, the Oct. 26 BTC price move to $21,000 is not yet being interpreted as confirmation that $20,000 has now become support.
In a recent “The Week On-chain Newsletter,” Glassnode analysts mapped out a bull case and a bear case for BTC.
According to the report, the bear case includes limited on-chain transaction activity, stagnant non-zero address growth and reduced miner profits present a strong Bitcoin sell-off risk but data also shows that long-term hodlers are more determined than ever to weather the current bear market.
The bull case, on the other hand, entails an increase in whale wallets, outflow from centralized exchanges and hodling by longer term investors.
On-chain active address growth remains stagnant across the BTC network. A reduction in transactions translates to a decrease in utilization and user growth for the network, factors which could possibly hinder BTC price expansion.
New addresses within the Bitcoin ecosystem that possess a non-zero address have also plateaued, a trend which also occurred in November 2018. Stalled growth in new non-zero addresses back in 2018, was followed by a BTC price dip and did not recover until January 2019 when this metric began to increase.
Related: Public Bitcoin miners hash rate is booming, but is it actually bearish for BTC price?
In previous years, many BTC miners held on to large quantities of BTC in their reserves. However, since the onset of the bear market, many miners are selling BTC in order to cover their capital costs and operational expenses.
With BTC mining production costs are rising amid a backdrop of falling revenues, miners are deleveraging by
Read more on cointelegraph.com
