Bitcoin began the new week on a positive note as it gained momentum to break out of its consolidation phase and finally surge past $12k. BTC is now trading at $12,010 during press time.
The world’s leading crypto had stagnated in the mid-$11,000s before today’s outstanding rally, which we predicted would take place if BTC breaks $11.7K.
A breakout past this crucial resistance level pushed BTC price higher to form a new monthly high near $12,084 before correcting slightly lower.
The flagship crypto is currently consolidating gains with initial support forming near the $11,900 and $11,800 levels.
In the coming sessions, $12,100 is the initial hurdle for the BTC bulls. A successful break above $12,100 could kick start a climb towards $12.4K.
Chances of Explosive BTC Price Rally Grow
After today’s BTC show of strength, analysts now predict that the crypto may soon see a strong uptrend due to inflows of capital from retail investors who are entering the market for the first time.
This increase in new investors is highlighted by the number of addresses holding over 1 BTC combined with BTC’s price uptick.
Bitcoin enthusiast and analyst TeddyCleps shared the chart below from data aggregator Glassnode, which shows a sharp increase in the number of wallets that now hold over 1 BTC.
The analyst went on to note:
“Interesting to see that despite the pandemic/recession the number of people creating wallets grew exponentially over the past few months.”
BTC Active Address Count Rises Steadily
Another metric showing that Bitcoin’s price rally has been underpinned by technical strength is a steady uptick in its active address count.
This metric has traded upwards over the last few days and has currently reached levels not seen since June of last year. The data on BTC daily addresses thus shows that the king coin is fundamentally robust and could be set to see further upside in the coming days and weeks.
Crypto analyst CryptoBirb shared the chart below that supports this theory. He observed that judging from the data from analytics firm Santiment, daily active addresses have matured against the 2019 peak.