Bitcoin: What you need to know about BTC’s race to $50K
- Around 48 new whale wallets returned as Bitcoin climbed over $43,000.
- New addresses continue to enter the network, but the rate has declined.
Bitcoin [BTC] has continued its price uptrend, reaching a new high for the year. As it enters this uncharted range, wallets that previously secured profits are now actively accumulating again.
Bitcoin addresses resume accumulation
The recent surge in Bitcoin prices has rekindled the accumulation activity among certain wallets.
According to the data from Santiment, these wallets had significantly accumulated during a period when the BTC price trend was relatively flat.
The accumulation persisted as the BTC price climbed, reaching a peak of over 16,000 wallets around 9th November.
However, the number sharply declined afterward, settling around 15,900. This decrease suggested that these wallets had liquidated their holdings, corresponding to a BTC price surpassing $37,000.
Following the sell-off, the wallets resumed accumulation as the BTC price continued its ascent. By 5th December, the number of wallets nearly reached its previous peak of 16,000 once again.
The rise coincided with when the BTC price surpassed the $41,000 mark. As of the latest update, the count was around 15,900, indicating a downward trend.
These movements suggest that wallets holding 100 or more BTCs are strategically navigating market highs and lows to maximize profits.
As existing Bitcoin wallets resumed their accumulation, there was a notable decline in the creation of new addresses by the end of 5th December.
According to the analysis of the new address chart on Glassnode, the number of new addresses in the network was around 422,000 on that date. This marked a significant decrease from the over 500,000 observed just a few days prior.
The decline indicated that the recent surge in Bitcoin’s price had yet to trigger a substantial influx of new addresses.
It also suggested that the ongoing price increase was predominantly driven by existing addresses rather than a surge in new participant activity.
Race to 50k?
Bitcoin commenced the day with a slight price dip but quickly gained momentum, concluding trading on 5th December at a yearly peak.
Analysis of the daily timeframe chart revealed that by the end of the trading day, BTC had surged by nearly 4%, reaching a value of over $44,000—a price range it had not touched in over a year.
Read Bitcoin (BTC) Price Prediction 2023-24
Furthermore, as of this writing, the new trading day exhibited a sluggish start with a decline of over 1%, bringing the price down to around $43,500.
Also, despite this dip, a robust bullish trend persisted. The Relative Strength Index indicated that it remained above 75, firmly in the oversold zone.