Bitcoin Analysts Map Key Bullish and Bearish Cases for BTC Price Action

BTC price is showing slight bullish momentum, leading on-chain analysts to present potentially bearish and bullish data-driven scenarios .

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Research has detailed Bitcoin's recent record volatility and while traders are expecting a possible price breakout, BTC's October 26 price move to $21,000 is yet to be interpreted as confirmation that $20,000 has now become support.

In a recent "The Week On-chain Newsletter", Glassnode analysts mapped a bullish case and a bearish case for BTC.

According to the report, the bearish case includes limited on-chain transaction activity, stagnant growth in non-zero addresses, and reduced profits for miners at high risk of selling Bitcoin, but the data also shows that hodlers investors are more determined than ever to weather the current bear market.

The bullish case, on the other hand, involves an increase in whale wallets, exits from centralized exchanges and longer-term investors.

Growth of new addresses stalled

Growth of active on-chain addresses remains stagnant on the BTC network. A reduction in transactions translates to less usage and user growth for the network, factors that could potentially impede the expansion of BTC prices.

Bitcoin Transactions of Active Addresses vs. Price of Bitcoin. Source: Glassnode

New addresses within the Bitcoin ecosystem that have a non-zero address have also plateaued, a trend that also occurred in November 2018. Growth The stagnation of non-zero new addresses dates back to 2018, was followed by a decline in BTC prices which only recovered in January 2019, when this metric started to rise.

New non-zero bitcoin wallets. Source: Glassnode

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