Bitcoin Price Rising Due To External Push Amid Downtrend In Active Wallets?

Source : coingape.com

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The Bitcoin (BTC) price on Monday rose sharply despite a downtrend in the number of active addresses. At one point, the cryptocurrency touched the $24,200 level. It appears that it is not much because of the crypto market but external reasons behind the price rise. Interestingly, there is hardly any uptrend in the number of Bitcoin active wallets.

Bitcoin Active Wallets In A Downtrend

On-chain numbers indicate that the number of active addresses holding BTC still remains low. Not just that, there is a downtrend in the active wallets, as per data from Crypto Quant. Meanwhile, there is a positive momentum in the crypto futures market at the moment. However, it is not sure as to how long the momentum will sustain.

Crypto Price Increase Anticipated

The cryptocurrency prices are rising as new contracts are opened in the futures market. Short term investors in crypto are taking positions in the futures market, thereby raising prices. The buying signals in crypto futures is likely to be in anticipation of price increases.

“Expectations of an improvement in macro sentiment lead short-term bettors to build positions in the futures market (Open Interest), betting on the momentum gain that could channel prices higher.”

Meanwhile, Bitcoin price stands at just under $24,000. As of writing, BTC price is $23,968, up around 3% in the last 24 hours. However, there are high chances of volatility as there could be an impact from macroeconomic events this week. Data on the all-important U.S. inflation is due on Wednesday.

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Also, short term speculation in the futures market is susceptible to quick turnarounds. These signals could bend crypto prices either way in the near future. “Directional bets at this time, on the cusp of important macro data are high risk, short term can change direction fast so it is important to be able to manage risk or allocation at this time.”

On the other side, predictions on Bitcoin price for the month of August are positive. BTC could end the month above $28,000, as per community predictions. It remains to be seen whether BTC would suffer a price correction or gain a positive momentum going forward.

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with the industry since 2016, Anvesh is a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.