Bitcoin has been sucking all of the oxygen out of the cryptocurrency market over the past few weeks, with the benchmark digital asset seeing a parabolic advance that has allowed it to post gains similar to those witnessed during the 2017 bull run.
Where the cryptocurrency trends in the coming few days should provide insight into the longevity of this movement.
If bulls can flip $15,000 into a strong support level, this could provide a base upon which it can grow further. That being said, a break below this level before the daily close could be dire and lead to further downside.
One factor that seems to indicate that this uptrend is just getting started is the immense fundamental strength underpinning this movement.
According to one analytics firm, the total number of unique Bitcoin addresses interacting with the network hit 1.17 million yesterday. This is the highest this metric has been since January of 2018, right after the crypto crashed from its $20,000 highs.
Bitcoin Rallies as Bulls Look to Flip $15,000 into Support
At the time of writing, Bitcoin is trading up roughly 7% at its current price of $15,100. This marks a massive surge from recent lows of $13,800 set just over a day ago.
This latest leg up came about after an extended period of consolidation within the upper-$13,000 region.
The next key resistance level analysts are watching sits at roughly $15,700, and a break above this level could open the gates for it to see a rally to fresh all-time highs.
BTC’s Fundamental Strength is Greatly Favoring Bulls
One trend that could significantly bolster Bitcoin in the near-term is the massive number of unique addresses interacting with the network.
Analytics platform Santiment spoke about this in a recent tweet, explaining that the number of addresses interacting with the network hit 1.17 million yesterday.
“The amount of unique Bitcoin addresses interacting on the network hit 1.17M yesterday, the highest mark since Jan 10, 2018. Additionally, the price cross above $15,200 today was $BTC’s highest market value since Jan 7, 2018,” they said while pointing to the below chart.
Image Courtesy of Santiment.
The coming few days and weeks could determine Bitcoin’s fate for the rest of 2020.
If the massive network interactions that have been taking place as of late continue favoring buys, the crypto could be on the cusp of rallying up to fresh all-time highs.
Featured image from Unsplash. Pricing data from TradingView.