Bitcoin: As demand rises, BTC prices will rise past 2024 predictions

Journalist

Posted: December 24, 2023

New demand for BTC has increased over the past two weeks.
Price volatility is starting to decrease.

Over the past ten days we have witnessed a remarkable increase in the number of addresses holding Bitcoin [BTC].

In a post on

???? #BitcoinThe number of wallets with >0 coins has increased to 916.75 million, which is an increase of +1.8% in just 10 days. Other top cap assets including #stablecoins like it #Tether And #USDCoinas a result, also see a higher growth rate

(Continued) ???? pic.twitter.com/gmi52Jijsf

— Santiment (@santimentfeed) December 22, 2023

According to the data provider, the total number of BTC holders is now above 50 million, growing by 8% since the market recovery began in October.

Source: Santiment

While increased demand for BTC over the past ten days from previously uncoined addresses could indicate increasing mainstream adoption, Santiment warned of the need to remain cautious.

The data provider said:

“While long-term network growth is a good sign, this rapid rise in new wallets is a FOMO sign that we should be somewhat cautious about.”

This suggests that the new entrants may be paper hands looking to cash in on quick profits from BTC’s current rally.

BTC in the past week

The price of BTC, which was trading at $43,595 at the time of writing, has risen almost 5% over the past week, according to data from CoinMarketCap.

In addition to the surge in new demand for the leading coin, the BTC market has recorded a widespread increase in the total number of unique active addresses involved in BTC transactions over the past week.

According to data from CryptoQuantAs of December 22, BTC recorded a daily active address count of 1.23 million. In the last seven days this has increased by 10%.

Source: CryptoQuant

On the same day, the price of the coin rose above $44,000. The last time BTC traded at this price level was on December 5. As a result of the price increase, there was a small increase in the amount of BTC sent to exchanges that day.

As some traders sold their coins to take advantage of the rally, BTC’s exchange reserve rose by 0.01%. At the time of writing, there were 2.02 million BTC held in crypto exchanges.

Interestingly, despite the recent price increase and associated coin distribution, volatility in the BTC market continues to decrease.

Readings of the coin’s Bollinger Bands (BB) revealed a narrowing gap between the indicator’s upper and lower bands. When a coin’s BB indicator narrows in this way, it indicates that volatility is decreasing

Similarly, the Average True Range (ATR), which measures market volatility by calculating the average range between high and low prices over a set number of periods, has fallen 9% over the past week.