Bull Case Grows: Millions Of Bitcoin Are Being Sent To Dormant Accumulation Addresses
- The selling pressure here remains quite significant, and whether or not this level can be firmly broken above could set the tone for its mid-term trend
- From a technical perspective, Bitcoin’s short-term outlook remains somewhat unclear, as it is currently moving lower despite bullishness amongst altcoins
- It may soon reclaim some of its dominance over the market and soar higher, but the resistance at $40,000 remains a major hurdle
- One on-chain analyst is now noting that there’s nearly 3 million BTC currently held in accumulation addresses, up 17% in the past year. This is a bullish fundamental sign for the crypto
Bitcoin has been struggling to gain any serious momentum throughout the past few days and weeks, with sellers building massive resistance around $40,000.
One on-chain analyst is noting that, despite technical uncertainty, Bitcoin remains fundamentally bullish. He is pointing to a continuous rise in Bitcoin accumulation addresses, noting that this suggests that continued growth is imminent.
BITCOIN SLIDES LOWER FOLLOWING $40,000 REJECTION
The selling pressure here remains, for the time being, insurmountable, and any continued downside may prove to be grave for the entire market.
BTC SEES STRONG RETAIL ACCUMULATION TREND
This is elucidated by the number of so-called “accumulation addresses” that the crypto has, which currently contain 2.7 million dormant BTC.
“2.7 million $BTC are held in accumulation addresses – that’s an increase of 17% in the past year. These are addresses that have received at least 2 incoming transactions and have never spend funds. Miner and exchange addresses are excluded,” one on-chain analyst said.
If this pattern continues, it could keep providing Bitcoin with an undercurrent of strength that ultimately allows it to see significantly further long-term upside.