By Shelly Melancon (Switzerland)
Bitcoin continued its impressive run on Wednesday, as it attained a new high in five months. Today, the flagship digital currency traded above $55k for the first time since mid-May, with $56k in sight as it looks set to clinch another record high price. The bullish run puts the BTC market cap at $1T. On-chain analysis shows that BTC would post another gain if it continues to hold support above the critical level, between $50k and $52k.
BTC Becomes Unstoppable
In the early hours of Wednesday, Bitcoin started the day with $51.5K, breaking the $50k barrier for the first time since early September. A few hours later, the cryptocurrency had started trading at $52k on the back of Gensler’s crypto comments in a House Committee meeting. In the last three hours, the price has jumped by more than 8%, hitting the $55k mark. The new price has raised BTC’s market cap back to $1T and pushed the overall crypto market capitalization to $2.2T.
At the moment, BTC is rallying around the $54k level. The rapid bullish run has liquidated over $200M worth of short positions in today’s intra-trading. Another factor that can be attributed to the recent BTC price action is the number of new addresses that have been created. According to experts and analysts, a continuous rise in the number of new addresses on the blockchain is considered an accurate indicator that influences the price of BTC.
Currently, the on-chain metric recorded a new high of over 480k addresses every day based on a three-month calculation. This implies that the number of addresses on the blockchain network is rapidly increasing. A rise in network growth equates to higher prices.
While there’s cause to celebrate, considering that this is the first time BTC price is reaching this high in months, the flagship crypto still faces a significant resistance ahead. Looking at the transaction history, over 750k addresses have previously acquired almost 450k BTC between $55k and $57k.
Due to this supply chain, the coin may require a daily candlestick slightly above this level to maintain its bull run. If this doesn’t happen, BTC’s price may crash again, below the resistance level. At the moment, it appears that Bitcoin is sitting on a stable support. Over one million addresses purchased approximately 650k BTC at $50,150. Demand will likely continue to push the price upwards if it holds for long.
Those who had purchased BTC during the dip would amass massive profits now, considering the recent bull price of the coin. El Salvador would be more than satisfied with the recent turnout of the event in today’s market.
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