To begin with, and according to his analysis, Bitcoin’s daily active addresses have halved since BTC set an all-time high value of $64,854 in mid-April. Mr. Edwards went on to share the following chart to demonstrate this fact.
Bitcoin Whales Who Sold at the Top, Are Yet to Start Accumulating
Secondly, Mr. Edwards pointed out that the Bitcoin whales who sold their bags as BTC pushed towards $64.8k, are yet to start buying. He went on to share the following chart highlighting the drop in the number of Bitcoin whales, holding more than 1k since BTC set its most recent all-time high.
Bitcoin’s New Address Growth Has Dropped to Levels Last Seen in Early 2018
Thirdly, Mr. Edwards pointed out that new address growth on the Bitcoin network has dropped to levels last seen in early 2018 during the market crash of that cycle. He further provided the following chart to demonstrate this fact.
It is with the above data and charts that Mr. Edwards went on to conclude that Bitcoin’s on-chain metrics with respect to addresses, paint a bearish picture as opposed to what many traders and analysts have been sharing on social media. An excerpt of his analysis of the situation can be found below.
I keep seeing posts on bullish Bitcoin address growth, but every address metric for Bitcoin looks awful…
These metrics can change quickly.
But for now, Bitcoin addresses metrics look terrible.