Bitcoin price: These signals are bullish

Bitcoin price: These signals are bullish

Is there a new bull run on the Bitcoin course? Blockchain analysts from Glassnodes have investigated Bitcoin addresses and have received positive signals.

With a current Bitcoin price of $ 9,183, the largest cryptocurrency by market capitalization can look back on a successful 2020. On January 1, the Bitcoin exchange rate was still $ 7,181, which means that the course of the digital currency BTC has increased by almost 30 percent. Studies by blockchain analysis company Glassnodes now give hope that there is still room for improvement.

Decision factor bitcoin adaptation

The all-important factor in this study is: Bitcoin adaptation. If the adaption or the willingness of the people to increase it, so the assumption, the Bitcoin course could also follow. Finally, the supply of new Bitcoin units is limited or decreases over time.

Due to the pseudonymity of the Bitcoin Blockchain, it is sometimes difficult to determine how many people actually use the cryptocurrency. For example, there is an unknown number of "ghost addresses" whose owners have lost their private keys or cannot remember them - and whose BTCs have disappeared forever. Another problem: Just because you know the number of existing Bitcoin addresses, you still don't know how many people are behind it. Because individual users can have multiple addresses. On the other hand, individual addresses - such as those of crypto exchanges - can manage the bitcoins of a large number of people. In short: It is not easy to determine the Bitcoin adaptation or the number of people who actually use the cryptocurrency.

In a blog entry , Glassnodes now presents a metric consisting of "a combination of standard heuristics from industry, proprietary cluster algorithms and advanced data analysis methods" in order to analyze on-chain data of the blockchain and to get a little closer to the problem.

Who owns all the bitcoins?

To clear up the confusing field of blockchain addresses, Glassnodes first divides the analyzed Bitcoin addresses into the following entities:

Bitcoin whales (addresses that hold at least 1,000 BTC)

active entities

Entities that send BTC

Entities that receive BTC

One finding from this division: The number of Bitcoin whales grows with the network. However, the majority of all entities that hold Bitcoin are on the 1-BTC border.

Glassnodes can also assign the majority of these addresses to individual entities. The analysts therefore come to the following conclusion for the division of the Bitcoin addresses.

14.159 million entities hold between 0.001 BTC and 0.01 BTC

7.51 million entities hold between 0.01 BTC and 0.1 BTC

2.71 million hold between 0.1 BTC and 1 BTC

149,793 stop between 1 BTC and 10 BTC

15,706 stop between 10 BTC and 100 BTC

1,905 hold between 100 and 1000 BTC

75 entities hold between 10,000 and 100,000 BTC

7 entities hold 100,000 or more BTC (the Bitcoin exchanges Coinbase, Huobi, Binance, Bitfinex, Bitstamp, Kraken and Bittrex).

The seven richest entities control over 2.35 million BTC, or 13 percent of the total.

Bitcoin address distribution, source: Glassnodes

In total, according to one of the findings of the study, there were 23.1 million entities holding Bitcoin in January 2020. The growth of the Bitcoin network, however, is (almost) consistently positive. In the history of cryptocurrency, there were only 21 days in which the growth of new entities had been negative:

This is a clear indicator of a healthy and consistent Bitcoin adaptation in the past ten years.

If you assume that the Bitcoin network will continue to increase in this sense, you can also expect a plus in the Bitcoin price. And there are good reasons for this assumption.

Bitcoin usage also high among merchants

As a recent study by Chainalysis shows , Bitcoin is gradually losing its grubby image of days gone by. As the industry magazine Coindesk additionally reported , recorded and retailers who pay with Bitcoin & Co. offer, steady growth. For example, the crypto payment service provider BitPay alone processed a billion US dollars in crypto payments last year.

The increase in crypto payments also confirms Coinbase Commerce. With $ 135 million in 2019, the service provider recorded an increase of 600 percent compared to 2018. Bitcoin & Co. are still a long way from a visa volume in the trillion USD range. Nevertheless or precisely because of this: there is still room for improvement. This is how Coinbase commercial chief Sahil Amoli from Coindesk is quoted:

In 2020, our main focus will be to provide a rich experience for traders with business functions and insights, to better serve other regions through internationalization, to add more currencies and to build seamless integrations that other Coinbase products use.

Coinbase also confirms a trend that we have already explained : The trend is towards cryptocurrencies.

Dream team: Bitcoin course and adaptation

According to the rules of the market, the Bitcoin price should rise as demand increases. This is especially true given the deflationary replenishment structure for Bitcoin. Because: The maximum total amount of Bitcoin units is limited. And it keeps on tightening. So the scene expects bitcoin halving in May this year. The reward that miners receive for successfully mined blockchain blocks is halved from 12.5 BTC to 6.25 BTC. Anticipating this event , observers of the scene anticipate increases in the Bitcoin price.

Bitcoin exchange rate over the 24-hour course

As we mentioned on Friday, January 31, reported that Bitcoin price could defend the 9,000-dollar support repeated. It continued its upward movement and was well above the moving average of the past 200 days. Support for the 38 percent Fibonacci retracement level at around $ 9,300 has yet to be defended.

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