Bitcoin has been struggling to gain momentum for the past few days, and sellers are building massive resistance around $ 40,000.
Bitcoin unable to break $ 40,000 is looking for direction
The coin recovered strongly from its $ 30,000 low set last week, but it remains unclear whether the V-shaped recovery seen since is sufficient to trigger a new wave of growth.
An on-chain analyst notes that despite technical uncertainty, Bitcoin is basically on the rise. Pointing to a steady increase in Bitcoin storage addresses, the analyst points out that this indicates that continuous growth is imminent.
Bitcoin is currently trading at $ 37,120, up over 5 percent. This marks a notable drop from the $ 40,000 high touched yesterday.
Accumulation addresses are remarkable
The selling pressure here cannot be overcome for the time being and any decline could pose a serious risk to the entire market.
Another uptrend currently supporting the growth of Bitcoin is a rapidly growing accumulation model among retail investors.
This can be explained by the number of so-called “backlog addresses” currently found in crypto containing 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.#Bitcoin
— Rafael Schultze-Kraft (@n3ocortex) January 15, 2021
If this pattern continues, it could continue to give Bitcoin a low power that ultimately allows it to see significantly more bullish in the long run.