Journalist
Posted:
- Bitcoin rose across the coin count during the press support range.
- However, bearish concerns overshadowed the king coin’s statistics.
The world was waiting for Bitcoin [BTC] to decide whether the bulls or the bears are favored. The risk of even more negative consequences left many traders on the sidelines, but some BTC enthusiasts still saw the price level as a favorable entry point at the time of writing.
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Bitcoin has certainly suffered from low volume amid the uncertain conditions. But the latest market data indicated that demand was gradually increasing. According to Glassnode, Bitcoin addresses holding at least 1 BTC reached a new all-time high of 1.09 million on September 9.
???? #Bitcoin $BTC The number of addresses with 1+ coins just reached an ATH of 1,019,765
Previous ATH of 1,019,706 was observed on September 8, 2023
View statistics:https://t.co/s7tx1xxyz3 pic.twitter.com/csvY8P9fNw
— Glassnode Alerts (@glassnodealerts) September 9, 2023
The fact that whole coins are on the rise is a good indicator of the prevailing level of demand for Bitcoin. Despite the growing accumulation, the low level of network activity has affected miners’ profitability, and thus the hash rate.
???? #Bitcoin $BTC Hash Rate Just Hit a One-Month Low of 60,787,530,201,427,197,952
The previous one-month low of 68,249,438,982,076,702,720 was observed on August 17, 2023
View statistics:https://t.co/idoCHWnGEn pic.twitter.com/iNWETBPADJ
— Glassnode Alerts (@glassnodealerts) September 9, 2023
Exchange rate balances underline the downward expectations
Although more and more coins have been accumulating, Bitcoin still experienced significant selling pressure, which could explain why Bitcoin is still struggling to break away from its current support level. Bitcoin currency balances have grown since late August.
Source: Glassnode
Rising currency balances are a sign that more traders have moved their money to exchanges. A possible reason for this could be that many traders expect more downsides, and therefore have more coins at their exchange addresses to sell in case the market crashes.
It could also indicate an increase in selling pressure.
The Federal Reserve’s next interest rate announcement is just days away. There are concerns that the next rate hike could trigger another Bitcoin sell-off.
However, if that were to happen, it would likely be followed by heavy accumulation as traders take advantage of the extended discount. This is also one of the main reasons behind the market volatility as BTC traders wait to see which direction the market will go.
How much are 1,10,100 BTCs worth today?
Based on the above, there is a chance that Bitcoin could lose its current support in the event of a major sell-off. However, the potential disadvantage may also be limited. This is because the price action in August could have offset the potential impact of interest rate hikes.
On the other hand, Bitcoin traders can also look forward to a favorable outcome. This would not only strengthen the support level but also act as the next turning point for another bull run. The probability of that outcome rationalizes the accumulation that is currently taking place.