As of this writing, the price of Bitcoin (BTC) has dropped by 1.18% to $41,148.47, indicating that it is still at an inflection point. Although researchers generally agree that Bitcoin may be in a bull market cycle, leading market analyst Ali Martinez has discovered a crucial network measure that has to be actively monitored as the cryptocurrency moves closer to a full-blown bull cycle.
Martinez claims that throughout the previous month, there has been a “noticeable dip in Bitcoin network growth”. He claims that this raises questions about whether Bitcoin’s current surge to $44,000 can be sustained. It is important to remember that on December 8, Bitcoin reached a record high of $44,705.52 due to the unprecedented excitement around the Bitcoin ETF.
Since then, there has been a cooling-off period, and Martinez believes a significant obstacle may lie ahead in the attempt to retest this level given the sharp decline in the number of new addresses.
https://x.com/ali_charts/status/1736637268608106933?s=20
He said that to ensure a “robust continuation of the bull rally, it’s crucial to see an uptick in the number of new $BTC addresses.” The author expresses optimism that the process of enrolling new addresses that ultimately purchase Bitcoin might “provide the needed support for sustained bullish momentum.”
Other Bitcoin catalysts to watch
Whether or not analysts pay attention to them, tracking many of the indicators within the Bitcoin network is crucial. One of the most notable of these is the competition between the US Securities and Exchange Commission (SEC) to create a Bitcoin spot exchange-traded fund (ETF).
If this ETF is approved, it might lead to a large influx of new investors and money into the Bitcoin market. In the long run, this will strengthen the thesis put out by Ali Martinez and enhance the purchasing pressure on Bitcoin.
In general, it’s important to keep a watch on the next Bitcoin halving event as it can cause a similar response.
