After a series of boring price actions, Bitcoin has once again gained prominence. There has been a gap of almost a month, and now the world's top crypto asset has risen to $40,393 on February 6.
In the last 24 hours alone, Bitcoin skyrocketed by more than 8%, adding to its weekly gains that rose to 24%. The cryptocurrency was now preparing for another run above its recently broken all-time high of $ 42,000.
Following the latest price action, several altcoins have also noticed big gains . For example, the second largest cryptocurrency by market capitalization, Ethereum [ETH] was now trading at $1,679 while XRP was up at $0.43.
The recent uptrend was accompanied by several positive metrics in the chain that turned bullish after weeks of price inaction. Crypto Economy had previously reported that Bitcoin's hash rate reached an ATH, indicating a feeling of growing confidence among market players, suggesting a favorable market structure for the cryptoasset that could essentially facilitate a long-awaited breakout.
At the time of this writing, Bitcoin has been hovering near $40,000, which is a very crucial level considering that it had faced severe pushback in the last month.
So the biggest question that remains to be answered is whether Bitcoin will be able to sustain the rally that has continued since last week.
Strong Bitcoin accumulation game
The accumulation game has remained unfazed despite Bitcoin's damaging drop to $ 30K early last month. The whales, for example, seemed to be quite optimistic when it comes to the value of BTC.
The whales, for example, seemed to be quite optimistic when it comes to the value of BTC. Popular cryptanalytic platform santiment recently revealed that Bitcoin whales, which have more than 1,000 BTC addresses, have not stopped accumulating.
Also, mid-tier traders [ie 10-1,000 BTC holders] have not stopped making a profit as crypto assets hover around $38,000.
Meanwhile, small addresses seem to be "coming back to FOMO" quickly. On top of that, addresses with a non-zero Bitcoin balance also hit an all-time high in 2021.
The number of active addresses on the Bitcoin network reached a new peak in the month of January this year. According to Glassnode , more than 22.3 million unique addresses were active on the network sending or receiving BTC, the highest monthly number in the history of the cryptocurrency to date.
This trend has been increasing even in the second month of the year. While the number of active addresses does not necessarily indicate a number of active Bitcoin users, it nonetheless projects a picture of increasing network activity.
With a number of data points on the chain turning bullish, Bitcoin could, in fact, generate new ATHs in the short term, bringing more credibility and more participants to the ecosystem.
Bloomberg's senior commodities strategist Mike McGlone noted a similar sentiment in his latest crypto outlook report in which he claimed that Bitcoin could be less risky than Dow by the end of 2021.
Now the big question is, should we expect more rise from bitcoin ?
