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Bitcoin price prediction as 700k new addresses join the network in a day

Bitcoin price prediction as 700k new addresses join the network in a day

Bitcoin (BTC) has experienced an impressive surge in its price in recent weeks. Its substantial rise can be attributed to a resurgence of investor optimism, largely fueled by the belief that US regulators may finally greenlight the first spot exchange-traded fund (ETF) for the cryptocurrency, possibly within this year. 

As a result of this newfound enthusiasm, BTC has soared above the $35,000 mark, a level it had not reached since May 2022. 

However, the burgeoning optimism isn’t confined to its price alone; it’s also evident in Bitcoin’s network activity, with over 700,000 new addresses added on November 4, as noted by crypto analyst Ali Martinez.

“This is an important milestone, as BTC network growth is the best price predictors!,” said the expert in his X post. 

Chart showing the number of new daily BTC addresses created. Source: Ali Martinez

Bitcoin price analysis

At the time of publication on November 6, Bitcoin was changing hands at $35.112, almost unchanged in the past 24 hours.

The leading crypto asset rose around 1.5% on the week and more than 26% across the past month, adding over $140 billion in market cap during that rally.

BTC 1-month price chart. Source: Finbold

At this stage, the next significant resistance level for BTC is around $38,000 indicating a price zone where sellers could pick up pace. But cryptocurrency expert Michael van de Poppe said last week he believes BTC would clear that barrier and hit up to $50,000 before the 2024 halving event. 

Spot Bitcoin ETF approval may have a limited price impact

As noted earlier, the surge in BTC and the broader crypto market was primarily driven by growing convictions that the US Securities and Exchange Comission (SEC) will approve a spot BTC ETF.

To be more specific, the rally was caused by the news that BlackRock’s spot Bitcoin ETFs, known as IBTC, had been listed on the Depository Trust & Clearing Corporation (DTCC) website.

Pseudonymous trader TheFlowHorse said the crypto markets could expect a move of “the same, if not greater magnitude” if the regulators actually approve the ETFs. However, the analyst said the significant rally that may come after the approval may be followed by a mid-term price retracement as many investors will likely seek to capitalize on the news and take profits. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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