Bitcoin prices are still consolidating after a 42% rally from the cycle bottom this year, but on-chain metrics hit new highs.
Despite a rebound in the cryptocurrency market in 2023, Bitcoin is still down 66% from its November 2021 all-time high (ATH) of $69,000. Investors who fail to hit the cycle bottom of $16,500 by mid-November 2022 still have a chance to reach current levels if market momentum continues, analysts said.
Moreover, this rally has come amid subdued macroeconomic and regulatory pressures.
On March 1, Fidelity researcher Jack Neureuter compilation List of on-chain metrics that are setting many new records.
Bitcoin indicators move higher
The first notable on-chain metric is the Bitcoin hash rate, the researchers report. bitmap Noticed that the network average is currently approaching a peak of 327 EH/s (exahash per second) after peaking in late February. Neureuter points out:
“The solvency concerns raised by many publicly listed miners last year appear to have subsided as more and more new machines continue to be introduced to secure the network.”
Bitcoin’s leading scaling solution, the Lightning Network, also hit an all-time high for the amount of BTC locked in network channels.
Additionally, the number of coins that have not moved in the past year has reached a new peak. Over 67% of BTC has not moved in the past 365 days as holders become more confident.
At the same time, according to data from Glassnode, the cumulative number of addresses has also reached an all-time high of 800,000.
Finally, the average block size recently reached a new peak during the Ordinal boom. Higher demand for block space could lead to higher network revenues, underscoring the industry’s long-term strength. The researchers concluded:
“Bitcoin had four price drops of more than 70% before last year’s crash. Each time it recovered to a new ATH. Based on today’s on-chain data, number 5 may follow previous historical trends.”
The BTC price has not changed much over the past 24 hours, remaining around $23,300 at press time.
Source: TradingView
The asset failed to break through the $25,000 resistance four times in February and fell back to current levels.
BTC is currently down 3.3% in the past week, and if there is no buying pressure, it may fall back to the $22,000 support level.
The number of addresses holding more than $10 in Bitcoin hits an all-time high
On March 1, a Reddit user under the pseudonym “partymsl” pointed out an interesting indicator of Bitcoin adoption trends. While the BTC price is still around 65% below its ATH, the number of addresses holding more than $10 has reached a new ATH.
The recent rally is a breath of fresh air after the 2022 bear market, but many point out that the top cryptocurrency is still struggling.
Number of addresses with balances over $10 BTC | Source: Tradingview
However, there are more important indicators than price, one of which is the number of people who own BTC. This can effectively indicate how many new users have entered or left the crypto market. Of course, this is not a perfect indicator, since a person can have multiple addresses.
However, if we categorize this metric deeper, we can look at whale addresses (descending) or retail addresses. Retail addresses are those with a very small amount of Bitcoin, such as an address worth $10.
new highs #bitcoin Addresses holding more than $10 worth $bitcoin Despite a 65% drop in ATH @azcoinnews https://t.co/RoSC885dAi
— Kyptos (@azcoinnews) March 2, 2023
What partymsl has observed is that the number of addresses holding more than $10 worth of BTC is steadily increasing and is now approaching or already at an all-time high of over 24 million addresses. This is a very bullish indicator, as the number of addresses holding more than $10 in BTC dropped even more during previous bear markets.
This time, however, the indicator has held steady, showing market acceptance even during a bear market. This is a positive sign for the future of Bitcoin, as more and more people begin to see the value in holding the digital asset.
While bitcoin prices are still struggling, it’s clear that more and more people are realizing the value of holding the cryptocurrency. With more use cases and adoption, Bitcoin may one day reach new heights that we have never seen before.
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Mingying
according to Kyptos
