Bitcoin price rises due to external push amid downtrend in active wallets?
- on Aug 08, 2022
The price of Bitcoin (BTC) rose sharply on Monday despite a downward trend in the number of active addresses. At one point, the cryptocurrency hit the $24,200 level. It seems that it is not so much because of the crypto market as the external reasons behind the price rise. Interestingly, there is hardly any upward trend in the number of active bitcoin wallets.
Bitcoin active wallets in a downtrend
The numbers in chain indicate that the number of active addresses containing BTC is still low. Not only that, there is a downward trend in active portfolios, according to Crypto Quant data. Meanwhile, there is currently positive momentum in the crypto futures market. However, it is unclear how long the momentum will continue.
Predicted Crypto Price Rise
Cryptocurrency prices increase as new contracts are opened in the futures market. Short-term crypto investors are taking positions in the futures market, driving up prices. Buy signals in crypto futures are likely to anticipate price increases.
“Expectations of improving macro sentiment are leading short-term punters to create positions in the futures market (Open Interest), betting on gaining momentum that could channel prices higher.”
Meanwhile, the Bitcoin price stands at just under $24,000. At the time of writing, the price of BTC is at $23,968, up around 3% in the last 24 hours. However, there is a high chance of volatility as macroeconomic events could have an impact this week. Data on the all-important US inflation is due on Wednesday.
Also, short-term speculation in the futures market is likely to turn around quickly. These signals could cause crypto prices to decline in the near future. “Directional betting at this time, on the cusp of important macro data, is high risk, the short term can change direction quickly, so being able to manage risk or allocation at this time is important.”
On the other hand, Bitcoin price predictions for August are positive. BTC could end the month above $28,000, according to community predictions. It remains to be seen whether BTC would experience a price correction or gain positive momentum going forward.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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