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Breaking News: Crucial Role Of The CLARITY Act In Avoiding A New October 10 Crypto Crash, Expert Explains
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Breaking News: Crucial Role Of The CLARITY Act In Avoiding A New October 10 Crypto Crash, Expert Explains

Bitcoin Now Forming Pattern That Last Led To It Blasting Off

Keshav Verma
Keshav Verma
Last Updated: July 9, 2024 11:00 pm
2 mins read
Bitcoin

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On-chain data shows that Bitcoin is forming a pattern in its Total Amount of Holders, which last proved bullish for the cryptocurrency.

Bitcoin Has Seen A Fall In Its Total Number of Holders Recently

According to data from the on-chain analytics firm Santiment, BTC investors have been liquidating their wallets amid the recent bearish wave in the asset. The indicator of relevance here is the “Total Amount of Holders,” which measures, as its name suggests, the total number of addresses holding some balance on the network.

When the value of this metric goes up, it means new investors are joining the network, and old ones who had sold earlier are returning. The trend can also arise due to existing users creating new addresses for privacy purposes.

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In general, some net adoption occurs when the Total Amount of Holders rises. Adoption is a constructive sign for any cryptocurrency in the long term.

On the other hand, the indicator registering a drop implies some investors have decided to exit from the asset as they are completely emptying their wallets.

Now, here is a chart that shows the trend in the Total Amount of Holders for five top coins in the sector: Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Cardano (ADA), and Chainlink (LINK), since the start of the year:

Bitcoin Total Amount of Holders
The value of the metric appears to have been going down for BTC recently | Source: Santiment on X

As is visible in the above graph, the total number of holders has recently gone through a drawdown for Bitcoin. This decline in the metric has come as the price of the asset itself has been moving down.

In total, 566,000 BTC wallets have emptied themselves during the last three weeks. The timing would suggest that the bearish market has spooked these investors into exiting.

Interestingly, Ethereum, Cardano, and XRP have continued to see a net increase in this indicator, implying that adoption has only furthered for these altcoins.

While BTC’s decrease does imply that holders are moving away from the network, the fact that FUD is the reason behind this departure may play into the cryptocurrency’s favor.

Historically, Bitcoin has tended to show moves in the direction opposite to what the crowd thinks, so the development of FUD has often led to the coin finding a reversal towards the upside.

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From the chart, it’s apparent that the total amount of holders also decreased in January and February, and this trend followed a sharp rally for the coin towards a new all-time high (ATH).

“Patient bulls should be pleased with this, as self-liquidating wallets from impatient non-believers is a sign of FUD-causing bottoms, just like we saw in January,” notes Santiment.

BTC Price

At the time of writing, Bitcoin is trading at around $57,400, down more than 7% over the last week.

Bitcoin Price Chart
Looks like the price of the coin has been heading down in recent days | Source: BTCUSD on TradingView
Featured image from Dall-E, Santiment.net, chart from TradingView.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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