Throughout the past several weeks, Bitcoin’s price has been stuck within a firm uptrend. However, this momentum is flashing some signs of stalling. Moreover, it consolidates within the upper-$11,000 regions. Analysts are now noting that Bitcoin will have firm fundamental growth in spite of the consolidation phase.
Because of the inflows of capital from retail traders who are just entering the market for the first time, analysts are now saying that Bitcoin might soon experience a firm uptrend.
These retail investors may give Bitcoin a strong base to grow upon. They are indicated by the number of addresses holding over 1 BTC along with BTC’s expanding price.
One indicator of technical strength according to a certain trader is the benchmark cryptocurrency’s daily active address.
He is saying that, despite BTC’s price being several thousand below where it was at this time, this metric is close to where it was during the June 2019 peak.
This means that the cryptocurrency is fundamentally strong at the present moment. Moreover, it could be in a position to see further upside in the days and weeks ahead.
Firm Fundamental Growth Despite Consolidation Phase
As of the moment, Bitcoin is trading down just under 2 percent, with the current price, $11,600. Throughout the past several days, the cryptocurrency has been trading at this price level.
Last Saturday, the crypto went to highs of $12,000 before its momentum slowed. As a result, its price dropped to $11,000.
The support here was quite a significance. However, BTC’s price quickly went back to the upper-$11,000 regions. It has been consolidating within this region ever since.
The number of wallets that now hold over 1 BTC is also a sign of the cryptocurrency’s intense and strong fundamental growth.
This metric has been growing along with the cryptocurrency’s price. This signals that further upside could be approaching soon.
A certain analyst expressed his thoughts regarding this topic in a recent tweet, saying:
BTC Active Address Count Shows Bullish Sign
Bitcoin has a steady rise in its active address count. This is another metric showing that Bitcoin’s recent rally has been supported by fundamental strength.
Furthermore, throughout the past several days and weeks, this metric has been trading upwards. It is now at levels not seen since June of 2019 – despite BTC’s price still being well below where it was at this time.
Another analyst posted:
Now, where Bitcoin trends in the days ahead will give perception into just how far this macro strength may let it to mount.