According to the latest data from CoinMarketCap, Bitcoin (BTC) appears to have finally found some stability in September, recording a price gain of nearly 13% in the last week. This notable performance has caught the attention of many investors and analysts alike, one of whom, Burak Kesmeci, has unveiled a critical condition that could be vital in initiating a market bull run.
Bitcoin Bulls Dominance Strengthens, Network Address Nears 350,000 Level
On Friday, Kesmeci shared insights via an X post, detailing how the number of new Bitcoin addresses per day serves as a strong indicator of price movement. Reflecting on the recent price gain, the analyst highlighted that new Bitcoin addresses have been on the rise, reaching 330,000 with the potential to touch the critical threshold of 350,000.
Kesmeci explains the pivotal status of 350,000 new addresses, stating that whenever the number of new Bitcoin addresses moves above this level, it suggests that bulls are gaining market influence and the price trajectory is upward. Conversely, when new BTC addresses fall below this threshold, it could indicate a price correction or the beginning of a bearish season.
In the case of a bearish trend, the crypto analyst further explains that a significant decline in new BTC addresses to below 250,000 would result in a full-fledged bearish market. This scenario has been observed on three occasions in the last six years: from $19,000 to $6,000 in 2018, from $64,000 to $30,000 in 2021, and from a record $74,000 to $49,000 in 2024.
However, the recent rise in new Bitcoin addresses, which had previously dipped below 200,000, to above 300,000 has been largely impressive. Kesmeci postulates that if this metric reaches above 350,000, especially following the US Federal Reserve meeting next week, BTC investors could be in for a “delicious” period of growth.
BTC Spot ETF To Threaten Network Growth?
The Bitcoin spot ETF market represents one of the most exciting developments in the crypto space for 2024. It is widely believed that these exchange-traded products will drive institutional demand for Bitcoin in the long run. While such notions may hold true, Kesmeci has expressed concerns about these ETFs potentially hampering network growth.
The reason behind this concern is that a single ETF could hold BTC for several investors, who would have otherwise created individual network addresses if they invested in Bitcoin directly. Therefore, there is a need for a constant influx of retail investors, even in the advent of ETF-driven price growth.
At the time of writing, BTC is trading at $60,395, reflecting a price gain of 4.31% in the last day. However, the asset’s daily trading volume has decreased by 9.35%, valued at $30.5 billion.
As the crypto market continues to evolve, keeping an eye on these critical factors will be essential for investors looking to capitalize on Bitcoin’s potential bull run.
