Recent data shows an interesting trend for Bitcoin, with over 700,000 new BTC addresses created in one day. This suggests strong demand for the cryptocurrency and could be seen as a bullish signal.
This expansion of the network has historically preceded upward movements in Bitcoin's price as scarcity takes hold and buyers are motivated to increase bids.
Despite altcoins leading the market's rally, Bitcoin's price has remained stable around $35,000. However, a 16% increase in trading volume indicates underlying buying interest, which could lead to further stability and a price increase.
Key levels to watch out for are $34,314k, $34,714, and $35,119, which represent important support and resistance thresholds. These could determine whether Bitcoin maintains its momentum and reaches the significant $40,000 level.
Capital inflows into cryptocurrency funds have also been observed, reaching the highest levels since the last bull market peak. This is a sign of growing investor confidence and reinforces the market demand for Bitcoin.
The convergence of increased trading activity, substantial inflows, and the buzz around a potential Bitcoin ETF could propel the cryptocurrency's price even higher.
If these trends continue, a meaningful recovery in Bitcoin's price could be on the horizon. This reinforces the belief of market analysts that there is strong demand for Bitcoin and bodes well for its future performance.