- BTC saw the highest number of new addresses in months.
- BTC has maintained the $60,000 price range.
This past week has been Bitcoin [BTC] the price fell below the $60,000 mark on two separate occasions, which was accompanied by a slight increase in reserves held by exchanges.
Interestingly, in addition to the increase in BTC on exchanges, there was a significant increase in the creation of new addresses.
Bitcoin drops below $60,000
AMBCrypto’s analysis of Bitcoin’s price movement over the past week, as reported by AMBCrypto, indicated a period of significant volatility.
On June 24, BTC experienced a notable decline of 4.60%, closing the trading day at approximately $60,263.
Despite this close, the price had fallen to $58,411 during the day. Similarly, the price of BTC tested another lower level on June 28.
The price fell to $59,868 and closed at around $60,313, which represents a decline of more than 2%.
Source: TradingView
At the time of writing, BTC was trading around $61,400, showing a modest increase of less than 1%. The Relative Strength Index (RSI), an important indicator of price momentum, was around 38.
This suggested that BTC was in a strong bear trend. An RSI below 40 generally indicates bearish momentum, and values approaching 30 are often interpreted as a signal of oversold conditions.
This step could therefore precede a possible price rebound.
This week’s price movements have also impacted broader market dynamics, including the creation of new Bitcoin addresses and changes in foreign exchange reserves.
Typically, significant price drops can lead to increased activity on the exchanges as traders move BTC to sell or buy at perceived key levels.
New addresses can also be created as new or existing participants enter the market to take advantage of the volatility.
Bitcoin on exchanges is increasing
AMBCrypto’s analysis of exchange reserve data from CryptoQuant revealed a subtle but notable increase in the volume of Bitcoin held on exchanges recently.
Although the foreign exchange reserve has generally remained around 2.8 million BTC, there have been minor fluctuations. Specifically, the reserve has increased by approximately 14,000 BTC in recent days.
Given Bitcoin’s current market price, this reserve increase translates into an inflow of approximately $851 million worth of BTC to the exchanges.
At the time of writing, the total amount of BTC in foreign exchange reserves was approximately 2.841 million BTC.
This increase in foreign exchange reserves could have several consequences. Typically, a rise in Bitcoin on exchanges is interpreted as a potential preparation for selling, which could put downward pressure on prices.
Alternatively, it can also indicate greater liquidity, potentially leading to greater trading volume.
There is remarkable growth taking place in the chain
For the first time in almost three months, there has been a notable increase in the creation of new Bitcoin addresses every day.
According to an analysis of Glassnode data, the number of daily new addresses rose to more than 350,000.
This level of activity had not been observed this month and the last time such a significant number of people occurred was in April.
Source: Glassnode
Read Bitcoin’s [BTC] Price forecast 2024-25
Furthermore, this spike in new addresses could indicate renewed interest in Bitcoin, possibly from newcomers to the market. It can also come from existing participants establishing additional addresses.
Such a significant increase often reflects broader market movements or sentiment shifts, which can have various implications for BTC’s network activity and price dynamics.