It has become known that Bitcoin (BTC) is facing a new resistance level at the $63,000 price area, which it failed to break and has now fallen below $59,000. However, this decline stimulated the current recovery in its network activity, indicating the possibility of a new rise. So far, July has seen an increase in activity on the Bitcoin network.
Bitcoin is seeing an increase in active addresses daily
On July 1, the number of unique addresses participating in a single transaction with the lowest relation to leading Bitcoin reached 902,000. This represented a 34% increase compared to the 674,000 registered daily active addresses on the Bitcoin network on June 30.
Additionally, the number of new addresses created for BTC trading jumped by 42%, reaching 434,000 on the day.
When assets see an increase in daily active addresses and new addresses, it is a positive sign. This indicates that more users are interacting with the asset, and new investors are entering the market.
An increase in asset network activity is one of the first indicators of a possible rise in price. Speaking to BeinCrypto about the significance of the recent increase in Bitcoin network activity, Juan Pelissier, senior researcher at crypto research firm IntoTheBlock, noted:
In addition, BTC whales have increased their accumulation in the past month. On-chain data shows that large BTC holders have purchased over 55K BTC, worth over $3B, at current market prices in the past 30 days.
BTC Price Forecast: Caution is Necessary
Despite the recent increase in BTC network activity, there is still a risk of extending its decline. Trading at $60,276 at press time, the value of the leading coin has fallen by 13% in the past 30 days.
BTC is trading below its 20-day Exponential Moving Average (EMA) at its current price. It has been trading below this key moving average since June 11.
The 20-day EMA tracks the average price of an asset over the last 20 trading days. When the price falls below this level, it is considered a bearish sign. This means that the asset price was recording lower lows compared to the average price over the past 20 days.
If this trend continues, BTC price may drop to $58,698.
However, if the sentiment surrounding the royal coin turns from bearish to bullish, the above prediction will be invalidated, as the price of the coin will rise to $61,839.
