Data Shows That Bitcoin (BTC) Rise Is Proceeding Solidly

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The number of Bitcoin addresses holding small amounts of BTC has increased, according to data from cryptocurrency market analytics firm Glassnode.

The data shows that more retail investors are likely to enter the Bitcoin market. This trend is positive in the near term as it means the market is less surrendering to whales. Thus, the probability of a major correction triggered by whale sales is reduced.

It also reinforces the argument that the cryptocurrency market is currently going through an accumulation phase. The stability of major cryptocurrencies such as Bitcoin and Ethereum and positive on-chain measurements show that it is a solid market.

Bitcoin (BTC) Horizontal Course Causes Accumulation Phase

Increasing retail demand for Bitcoin could mean a trend similar to the accumulation phase. Historical data shows that Bitcoin typically tends to move cyclically. After highly volatile periods, BTC is seeing long periods of stability.

As seen in early 2019, for example, BTC has been stable in the $ 4,000 region for months. After an accumulation phase occurred, BTC started to recover.

Increasing retail activity in the Bitcoin market is important as it indicates an influx of new investors. It shows that the uptrend is unlikely to be caused by existing investors and whales that artificially push the market upward.

The trend also matches a variety of key data points including Google Trends. The popularity of Bitcoin and Ethereum keywords is growing, indicating the mainstream interest is growing.

See Also
The Number of Bitcoin ATMs Worldwide Exceeded 8 Thousand

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