Amid the bearish impression surrounding the cryptocurrency market lately, a prominent crypto analyst has revealed a recent trend for bitcoin (btc)which will help reinforce the continuation of its price rally.
What bitcoin needs to maintain and expand its rally
A cryptocurrency analyst recently known as Ali shared this crucial information with the entire cryptocurrency community on December 18, 2023. The analyst took to X (formerly Twitter) to highlight what bitcoin needs to maintain its upward trajectory.
Ali said the crypto asset has seen a drop in network growth over the past month, raising concerns about the stability of btc's recent price move to $44,000.
He added that the creation of new bitcoin addresses must expand to ensure a strong continuation of its rally. This will provide much-needed support for the crypto asset to maintain its bullish momentum.
The post said:
There has been a notable drop in #bitcoin network growth over the past month, casting doubt on the sustainability of $btc's recent move to $44,000. For a solid continuation of the bullish rally, it is crucial to see an increase in the number of new $btc addresses. This would provide the necessary support for sustained bullish momentum.
btc needs more investor and institutional support to sustain their recovery. A chart accompanied the crypto analyst's X post to further support his projection.
This prediction means that there may be more corrections on the cards for the digital asset. This is due to the discrepancy between the creation of new addresses and the current rise in bitcoin price.
Anyway, approve a bitcoin place The exchange-traded fund (ETF) in the US could create a avenue for greater institutional investment, thus reversing this trend.
At the time of writing, btc was trading at $40,980, indicating a decline of over 2% in the last 24 hours. According to CoinMarketCap, its market capitalization decreased by the same percentage in the last 24 hours.
Digital asset prices have increased by 146% in the last year, demonstrating amazing growth during this period. Its performance during the same year exceeded 73% of the top 100 crypto assets, placing it among the best performers.
The crypto asset fell below its crucial supply area
Ali also has shared Another post on X shows that bitcoin has witnessed a drop below its key supply zone. The analyst noted that the zone ranges between $41,200 and $42,400, of which the asset recently fell below this range.
He added that 1.87 million addresses in this region have accumulated around 730,000 btc. With Given this fall, these holders can sell the token to reduce losses.
The crypto analyst also highlighted a possible drop to the next demand zone ranging between $37,500 and $38,700. Meanwhile, around 1.28 million addresses in this region have accumulated 553,000 btc tokens.
Featured image from iStock, chart from Tradingview.com
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