Bitcoin active addresses hit 6-month high – Is $100K now within reach?

• Bitcoin lively addresses hit a six-month excessive, suggesting robust market curiosity.
• BTC is at the moment trying to take care of its breakout above $97,000.

Calling for a $100k goal whereas Bitcoin [BTC] simply dipped 4% from its $97k excessive in solely three days may sound a bit bold.

Nevertheless, on the on-chain aspect, Bitcoin just lately recorded its highest community exercise in six months, with 925,914 lively addresses in a single day, when BTC was sitting at $96,951.

You’d assume that type of buzz would ship BTC hovering, proper? As a substitute, BTC fell almost 2% the very subsequent day.

This echoes the same sample from early March, when lively addresses spiked to 860k on the seventh of March (the very best in per week), just for BTC to retrace 7% as lively addresses declined shortly after.

Supply: Glassnode

This price-action conduct displays a bearish divergence between on-chain exercise and worth motion. 

Additional investigation by AMBCrypto revealed that on the identical day the lively handle rely surged, roughly 5,000 BTC (price round $484 million) flowed into derivative exchanges.

Consequently, this signaled speculative positioning slightly than real spot BTC demand. So, as a substitute of long-term holders stacking up, the market might be seeing leverage-driven promoting, which possible prompted the worth dip.

Is Bitcoin operating out of FOMO as lively addresses plunge?

The final time Bitcoin skilled real spot demand was on the twenty ninth of April, when web outflows throughout all exchanges spiked whereas BTC was priced at $94,280. 

Since then, though the worth has reclaimed key resistance ranges, web flows have remained largely flat. Appears to be like like retail’s taking a step again – Might this be an indication of bullish fatigue?

Supply: CryptoQuant

Compounding this, Bitcoin’s active addresses sharply declined from a six-month peak on the 2nd of Might to a two-week low of 618k the day after. 

This drop mirrored a transparent hesitation amongst merchants to interact in spot shopping for close to the $97k degree. Therefore, signaling waning participation and reluctance to build up BTC at elevated valuations. 

On this context, the $100k goal seems more and more speculative.