Bitcoin’s fundamentals continue to show signs of strength. According to the on-chain data provider Coin Metrics, the number of BTC active addresses has soared to a level not seen in over two years.
Hans Hauge, the head of quant strategy at crypto asset management firm Ikigai Fund, published a Coin Metrics chart highlighting the sustained growth of the number of BTC active addresses over the years.
“Bitcoin doesn’t have to be complicated. The supply is capped and the number of users has been growing exponentially this whole time.”
Analysts use the active addresses metric to measure the rate of a crypto asset’s adoption.
The metric refers to the number of unique addresses that are active on the network as a sender or receiver of the crypto token. On September 25th, the number of BTC active addresses skyrocketed to 1.14 million – the highest level since the 2017 bull market.
The growth in user activity comes as Bitcoin continues to trade around a key level for the bulls.
The number one cryptocurrency is on the verge of closing the month above $10,500, which crypto strategist and trader Bitcoin Jack says indicates that BTC is converting previous resistance into support.
Thoughts if the monthly closes like this? pic.twitter.com/grea0j4N5d
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) September 29, 2020
While BTC looks bullish on the long-term timeframe, some analysts believe that Bitcoin is due for one more leg down in the short term.
In a new video, trader Michaël van de Poppe tells his crew of 78,000 that the number one cryptocurrency will likely breach support of $10,000 in the near term.
“Given that we’ve been making lower highs and lower lows, it’s very likely that after this structure, we’re going to break this low and then we get towards $9,600 later on to hopefully confirm the end of this correction on the markets.”