Bitcoin is traded close to $ 38,000. The break earlier this week has responded as a relief. On Tuesday, staying above $ 35,000 for the coin that hit $ 37,000 allowed the price to break out of the resistance. Traders are preparing to predict the impact of the current price trend on future rallies. Other metrics such as active addresses and distribution are equally critical.

 

 

What do active addresses and savings levels tell for Bitcoin?

Bitcoin made history with 22 million active addresses in January 2021. And this number has surpassed ATH since December 2017. Despite differentiating from gold for retail traders, the so-called “digital gold” continues to compete with the precious metal. The price trend of gold became even more negative as the dollar strengthened against gold and the selling pressure on Bitcoin’s increased adoption and demand continued to rise. Even a price correction proved insufficient to attract investors to gold.

The more profitable Bitcoin has attracted a larger pool of institutional investors over the past few weeks due to the promising results on company balance sheets and the appreciation of the stock price. Out of 22 million active addresses, more than 60% of the active supply is controlled by large investors, institutions and whales. The remaining 40% is managed by retail traders, according to data from Glassnode.

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The chart above shows Bitcoin accumulation at various price levels. This accumulation changed more significantly after the third halving. 22 million active investors constantly created demand from institutions and fair distribution increased. The increase in distribution contributed to increased volatility and increased demand in spot and derivative exchanges. Although institutions do not make purchases through order books, the recent increase indicates a positive change in sensitivity and price increase. Further adoption from retail could have a significant impact due to 40% control of active supply.

 

The price can stay above $ 35,000

The growing backlog of over $ 30,000 initially suggests strong support from institutions and whales. Additionally, the price is likely to remain above $ 35,000 as the acquisition continues at over $ 35,000. The current price also proves this.

Therefore, increasing demand from addresses and institutions could have a significant impact on Bitcoin’s price rally in the coming weeks.

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