Santiment analysts observed a drop in the number of active Bitcoin addresses as the price rose toward $12,000 and then corrected below $11,000.
1) As $BTC scraped above $12k 18 hours ago, there were warning signs flashing that indicated that daily active addresses on the network were not keeping up with the surging price, and a correction would be swift. A telltale bearish divergence formed pic.twitter.com/82KhmTc4F7
— Santiment (@santimentfeed) August 3, 2020
Researchers say that the pace of address growth lagging behind the rapidly rising BTC price is a reliable indicator of an impending correction.
On Sunday morning, August 2, Bitcoin broke above $12,000, but could not stay above it. Within minutes, the quotes for the leading cryptocurrency plummeted to around $10,500.
Four-hour BTC/USD chart for the Bitstamp exchange on TradingView
As of now, the price has somewhat recovered, with the leading cryptocurrency trading around $11,200.
According to trader Michaël van de Poppe, the nearest resistance for BTC’s price is in the $11,350-$11,500 range.
Small video update on $BTC before I’m heading offline.
Crucial barrier? $11,350-11,500.
Resistance after? $11,675-11,750 (also probable CME gap)Most likely sideways notion, just like we did before the price even broke out. pic.twitter.com/yJ7zNkMUnC
— Crypto Michaël (@CryptoMichNL) August 2, 2020
Earlier in July, the number of active Bitcoin addresses hit a two-year high.
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