Bitcoin’s Non-Zero Balance Addresses Keep Surging, But These Key On-chain BTC Metrics Show Weakness

cryptonews.com:

The number of Bitcoin wallets holding a non-zero BTC balance continues to rocket higher, hitting a new all-time high of 45.388 million on Sunday, as per data presented by crypto analytics firm Glassnode.

That’s a rise of over 2 million since the start of 2022 and is the fastest rate at which the Bitcoin network has added non-zero wallet addresses since early 2021.

That’s good news for the Bitcoin price, as a higher number of wallets with a non-zero balance implies a greater number of investors are stepping into the Bitcoin market, or, in simpler terms, that demand continues to grow.

However, a few other widely followed metrics pertaining to activity on the Bitcoin blockchain have weakened in the last few days, in wake of Bitcoin’s failure to test $30,000 last week.

If Bitcoin is to blast past $30,000, a pickup in these metrics will likely be needed.

The seven-day moving average of the number of active addresses interacting with the Bitcoin network on a daily basis recently fell to its lowest level since late January.

Less activity between wallets on the Bitcoin networks suggests that Bitcoin trading volumes have fallen versus their levels over the last few weeks, implying demand weakness.

Meanwhile, the seven-day moving average of the number of new addresses interacting with the Bitcoin network recently fell to one-month lows, as did the seven-day moving average number of transactions taking place on the Bitcoin network.

As above, this weakness in key metrics measuring network activity, utilization and growth suggests a slight weakening of demand for Bitcoin.

Bitcoin bulls shouldn’t panic. Despite some modest weakness in these metrics, all three remain in an uptrend for the year and should, at the very least, remain at elevated