The data shows that the number of active Bitcoin entities is on the rise, but the growth pattern remains in a bearish market channel.
Active Bitcoin Entity Count Continues to Stay in a Bearish Market Channel
According to the latest weekly report from glassRecently, the number of active BTC entities has seen a steady growth in the number of users.
The “Number of active entities“It is an indicator that tells us the number of daily active users on the Bitcoin network.
Here the entity refers to a group of addresses held by a single investor, so the number of entities is different from the total number of addresses on the network.
When the value of this indicator goes up, it means that more stockholders are making deals at the moment. The sharp growth could indicate that a large number of new investors are entering the bitcoin market.
On the other hand, decreasing metric values indicate that interest in cryptocurrencies is waning as investors stop.
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Now, here is a chart showing the trend in the number of active Bitcoin entities over the past several years:
Looks like the metric has observed some growth recently | Source: Glassnode's The Week Onchain - Week 15, 2022
As you can see in the above chart, the number of active Bitcoin entities has been steadily increasing in recent weeks.
However, the value of the scale is still within the range that the report refers to as a “bear market channel”. As the name implies, the pointer is usually within this range during Downtime Where constant user growth is observed, but nothing too explosive.
During the hype in a bull market, on the contrary, the number of active entities usually shows a very rapid rise. But near the peak, the indicator also collapses sharply.
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Recently, the trend has been a sharp growth in active Bitcoin entities, but as we noted earlier, the current value remains at the upper end of the bearish market channel.
However, the report notes that any expansion here means that the index will eventually escape from this range, something that could be beneficial for the coin’s price.
At the time of writing this report, Bitcoin price It is floating around $40.4K, down 14% in the past week. Over the past month, the value of the cryptocurrency has gained 3%.
The chart below shows the currency price trend over the past five days.
Bitcoin seems to have plunged down over the last couple of days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com