Bitcoin’s 2020 price movement has been a prime example of continuous ebb and flow. January was the best-ever start of the year for the coin, whereas the collapse in March was the worst single decline in the last 8 years.
April has indicated another cycle of recovery and regrowth, and at that moment Bitcoin’s $3800 befall seems like a distant dream. Bitcoin’s fundamental metrics have also improved in the past, according to the recent Arcane Research report.
Data collected from the analysis platform indicated that since the beginning of March, the number of new Bitcoin addresses holding more than 0.01 BTC has increased by 5.2%, with 410,000 new addresses have marched in.The collapse on 12th March was in the middle of this, and it did not register a significant hurdle. It was also added that the number of addresses with more than 0.01 BTC was at an all-time high of 8.3 million addresses. However, the report added,
“However, the creation of more new addresses doesn’t necessarily infer an increase in terms of users. The increase in the address could also be led by whales moving coins around for security reasons through mixing services.”
Is Bitcoin’s weak on-chain demand creating resistance up-top?
On the other hand, the report also exhibited a significant contrast to Bitcoins’s growing fundamentals.
The above chart suggested that Bitcoin’s on-chain demand has been dwelling at a weakened state in the current market. The on-chain demand score is rated from 0 to 6 and anything above 4 is considered a strong regrowth of on-chain demand.
The rating pictured a score of 3 at the moment for Bitcoin, which hasn’t changed after the collapse. The score was 4 and above at the start of March.
It can be speculated that Bitcoin’s current on-chain may be the reason that the asset could not cross $7000 properly. At press time, BTC was above $7k, but since the beginning of April, it has been four times above and below the range, underlining the strength of resistance at $7000.
Bitcoin’s Fear and Greed Index remains in “extreme fear” for 5 consecutive weeks
A record that Bitcoin would have liked to avoid is its consolidation at ‘extreme fear’ according to Bitcoin’s Fear and Greed Index.
The index represents the overall sentiment of the market, and it was observed that regardless of Bitcoin’s 90 percent jump since March, the asset has continued to remain at an “extreme fear” state. This implied that past investors and potential investors were still skeptical about Bitcoin’s future and they were currently observing the asset from the sidelines.
With price volatility high in the charts, these investors could soon re-enter the market and revitalize the Bitcoin rally, but for the time being, the jury was out on ‘Bitcoin’s positive move.’
