BTC Deviates and Rebounds, Pay Attention to Long and Short Differences- Jan. 6th

Analysts at Bexplus found that after BTC continued to shrink and rebound in the short-term, it reached a maximum of $35,781, which is also the highest point in history. Mainstream cryptocurrencies rose following the rebound of BTC, and most cryptocurrencies performed strongly.

Although the BTC price trend maintained its upward momentum, the number of BTC on the exchanges remained high, which is one of the sources of long-short divergence. At the same time, this also means that selling pressure will appear at any time. As long as there are signs of insufficient bullish pull ability, BTC prices may retreat substantially.

In terms of the number of active addresses, the number of active addresses on January 4th reached 1.27 million, the highest value since the end of 2017. This shows that more investors have increased their enthusiasm for high-level transactions.

(active addresses of BTC)

At the same time, the number of new addresses is only 610,000 according to Glassnode, which means that the real FOMO sentiment has not yet appeared. In terms of indicators, the value of the RSI indicator diverges slightly, and it is a divergence pattern when the RSI indicator is overbought, so its bearish signals can be paid attention to.

(new addressess of BTC)

When BTC is above $20,000, the two-way fluctuation characteristics of BTC are obvious. On December 27th and January 4th, the price surged and fell, with the amplitude reaching 9.8% and 17.6%. Therefore, it is also very important to control the cost of holding currency while chasing up the transaction.

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[…] In terms of the number of active addresses, the number of BTC’s active addresses on January 6th soared to a historical high of 1.344 million, which was 5% higher than the 2017 highest value of 1.28 million. It can be seen that the trading trends of cryptocurrency investors have increased significantly. The main reason is the stimulus of rising BTC prices. After the increase in trading activity, the conversion of chips will undoubtedly increase the selling pressure. […]

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