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Bitcoin (BTC), the world's largest digital currency by market capitalization, has maintained a relatively solid disposition and price growth since the start of the year. At the time of writing, the coin is changing hands at $21,077.33, up 1.36% in the past 24 hours as more retail investors gear up their buying momentum.
There are different factors that define Bitcoin's price growth, and while many of these could be fundamental, there are some unique on-chain indicators that can bolster assumptions with respect to how the premier cryptocurrency might approach an additional influx of funds from both retail and corporate buyers across the board.
According to data from crypto analytics platform Glassnode, the number of Bitcoin addresses in loss based on data from the seven-day Moving Average (MA) has reached an eight-month low of 14,515,726.077.
📉 #Bitcoin $BTC Number of Addresses in Loss (7d MA) just reached a 8-month low of 14,515,726.077
— glassnode alerts (@glassnodealerts) January 20, 2023
View metric:https://t.co/s2ciFMlDcX pic.twitter.com/0heUVR6Q2l
What this means is that more Bitcoin addresses are beginning to see profitability in their holdings as the current price is above their average entry price over the defined monthly period. In this situation, there is a tendency that these investors or buyers can find a good entry when Bitcoin's price records a mild correction.
Should this assumption hold true, it can spell the start of a sustainable new run for BTC.
Charting upward price momentum
There have been a number of ambitious predictions about the price of Bitcoin this year. While some of these projections are conservative, such as Ben Armstrong's projection of a range of $25,000 to $30,000, there are a number of others that are overly ambitious at this time.
Bitcoin hit its all-time high (ATH) in November 2021, and at present, it is down by a massive 69.36%. The coin has a lot of upward growth tendencies. However, current headwinds, including the crisis rocking the Digital Currency Group, whose subsidiary Genesis Global just filed for bankruptcy, will have to be overcome first.
Tomiwabold Olajide
Dan Burgin
