• Bitcoin [BTC] saw an influx of new addresses and a decrease in exchange reserves.
• Despite weekend corrections, BTC attempted to make a comeback with modest gains on the daily timeframe chart.
• Metrics such as the new address increase and exchange reserve decline suggested that this dip was only temporary.
Bitcoin Sees an Influx of New Addresses
Despite the recent dip in Bitcoin’s value on 1-2 April, data from Glassnode indicated that new investors continued to flock towards the cryptocurrency. As of 2 April, 471,000 new addresses had joined the network. This surge in new addresses joining the Bitcoin network is likely to have a positive effect on BTC’s price movement as more investors open up new addresses and demand increases.
Exchange Reserve Declines
Data from CryptoQuant showed that there has been a decrease in BTC’s exchange reserve over the past ten days with approximately 46,000 BTC being taken off exchanges – worth around $1.24 billion – suggesting that investors are moving their BTC off exchanges for long-term storage reducing the available supply of BTC on exchanges.
Weekend Corrections
The weekend brought with it some necessary corrections which subdued the bullish mood previously seen in Bitcoin’s price run leading into April 2021 reigniting hopes for its surge into illustrious $30,000 range. Despite this apparent downturn certain metrics pointed to this as nothing more than a fleeting obstacle in the grand scheme of things.
Attempted Comeback
As of writing Bitcoin was attempting to make a comeback as evidenced by its daily timeframe chart showing slight declines over the last two days at less than 1%. Trading at around $28300 re-gaining some ground lost by weekend corrections could suggest growing interest despite potential temporary setbacks.
Positive Metrics
The metrics such as increase in new address joining network and decrease in exchange reserves suggested that this dip was only temporary and with more investors entering market due to minor drops in prices could boost networks number of address ultimately driving up coins price ultimately leading to bullish movement again soon ahead.