The past week has seen significant gains for both Bitcoin and Ethereum, with regulatory news and ETH network update playing major roles. Over the last seven days, BTC has increased by more than 12%. Since then, the top cryptocurrency has recovered the $22,000 level as of publication, a level not seen since August.
It’s interesting to note that there was a dramatic rise in the number of daily addresses following the recent BTC price spike. The approximate weekly average is 410,000 addresses. Bull’s takeover will be confirmed if the weekly average addresses continue to rise to over 415,000.
The debate of whether or not the price of bitcoin has bottomed out lingers as the price of BTC continues its bear market rally. In the past, September has not been good for Bitcoin, and volatility is also increasing amid the CPI data that will determine whether the Fed raises interest rates by 50 bps or 75 bps on September 21. Additionally, this week’s Ethereum Merge has an effect on the activity on the Bitcoin network.
Is the Bitcoin Bottom In?
On September 12, cryptocurrency expert Ali Martinez tweeted, “The bottom could be in! With a weekly average of over 410,000 addresses, Bitcoin records an increasing number of addresses every day. A rise above 415,000 average weekly addresses would indicate an optimistic outlook. As a result, BTC bulls may unseat bears.
The 7d moving average data shows that the number of new addresses increased to levels seen in mid-June. The prior peak was at 415,000. A gain above 415,000 is therefore necessary to support a bullish rally.
Furthermore, the ratio of transactions in Bitcoin’s profit/loss statistics is at its highest point since March, according to the on-chain platform Santiment. It denotes a rise in profits as traders jumped back into the BTC market.