Buyers returned to market, locating interim upside opportunities as Bitcoin price rebounded to nearly $40,000
Buyers returned to the Bitcoin market, looking for temporary upside opportunities as the Bitcoin price recovered to nearly $40,000 on Feb. 25, up 16% in less than 24 hours. At the time of writing, BTC is changing hands at $39,344.
BTC/USD 4-hour chart | Source: TradingView
Investors ‘buy the dip’ as Bitcoin price nears $40K, gaining 16% in less than 24 hours
The number of Bitcoin addresses with balances greater than 0.01 BTC (~$400) has hit a record high of 9.51 million. Meanwhile, the number of addresses holding at least 0.1 BTC (~$3,850) also hit 3.34 million for the first time in history.
Bitcoin addresses with a balance greater than 0.1 BTC | Source: CoinMetrics, Messari
Overall, Bitcoin’s network added a little over 24,500 addresses with non-zero balances on Thursday, coinciding with BTC’s variable price action – from around $37,200 to below $34,500, followed by a rally back towards $40,000.
Data resource Ecoinometrics divided the addresses into two groups: one that holds less than 1 BTC, and the other that holds anywhere between 1,000 BTC and 10,000 BTC, noting that both groups have been “buying the Bitcoin dip,” saying.
The prospect of higher inflation could also increase with the Ukraine-Russia conflict leading to higher commodity prices globally even though the US Federal Reserve is set to tighten policy next month.
Bitcoin fear and greed index | Source: Alternative.me
Despite the bullish outlook, which comes after Bitcoin’s intraday rally to $40,000, the market’s Fear and Greed Index score is again at 27, indicating insecurity among investors/traders next time.
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