Bitcoin (BTC) has formed a new resistance level in the $63,000 price region. However, the current resumption of network activity suggests the possibility of a rally above this level.
So far, July has seen a surge in activity on the Bitcoin network.
Bitcoin witnesses surge in daily active addresses
On July 1, the number of unique addresses involved in at least one transaction involving the leading cryptocurrency asset was 902,000. This is 34% more than the 674,000 recorded in daily active addresses on the Bitcoin network on June 30.
Additionally, the number of new addresses created for BTC trading increased by 42%, reaching 434,000 that day.
When an asset sees a surge in daily active addresses and new addresses, it is a positive sign. It indicates that more users are interacting with the asset and new investors are entering the market.
A surge in an asset’s network activity is one of the first markers of a potential price rally. Speaking to BeinCrypto about the significance of Bitcoin’s recent surge in network activity, Juan Pellicer, a senior research fellow at cryptocurrency research firm IntoTheBlock, noted:
“This is an encouraging sign for Bitcoin, as activity on the network has been noticeably declining since March of this year.”
Additionally, BTC whales have stepped up their accumulation in the last month. On-chain data shows that large BTC holders have bought over 55,000 BTC worth over $3 billion at current market prices in the last 30 days.
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According to Pellicer, such accumulation was most pronounced during Bitcoin’s recent drop to $60,000, indicating buying pressure from large holders near that level.
BTC Price Prediction: Caution Needed
While there has been a recent surge in BTC network activity, there remains a risk of further decline. At press time, the leading coin was trading at $60,276, and has fallen 13% over the past 30 days.
BTC is trading below its 20-day exponential moving average (EMA) at current price. It has been trading below this key moving average since June 11.
The 20-day EMA of an asset tracks its average price over the last 20 trading days. When the price falls below this level, it is usually considered a bearish signal. This means that the asset’s price has made lower lows than its average price over the last 20 days.
If this trend continues, the BTC price could fall to $58,698.
Read More: Bitcoin (BTC) Price Prediction 2024/2025/2030
However, if the sentiment surrounding the king coin changes from bearish to bullish, the above prediction will be invalidated as the coin price will rise to $61,839.
