One analyst claims that active addresses didn’t replicate a previous price breakout in this month’s market, but they did seem to have realized price returns as resistance. The latest data show that Bitcoin is resuming price action in May, with its latest drop.
Analysis suggests that the BTC/USD’s recent drop of 6% is not sustainable. The BTC chart is haunted by the realized price. The latest snap losses in Bitcoin price action have been taking many by surprise.
The largest cryptocurrency has fallen from $23,800 to $21,400 in just one hour. Now, it is trying to establish support at the same price as its realized value.
The realized price is just below $22,000 and refers to the total amount at which all the BTC supply has moved in the last 24 hours.
Many market participants will recognize the setup. Realized price was an initial support line in Bitcoin’s fall in May immediately after the Terra (LUNA), now renamed Terra Classic, (LUNC), blowout.
History rhymes, at least as shown on the chart. It remains to be seen if other points of interest in the past will continue to play their part.
The 200-week moving average is one of them. This hard-won support level in July has now seemed to be lost in one fell swoop.
The spot price of $22,260 is also now higher than the 50-day MA that was cleared in July.
The Wall Street open showed that the United States Equities Futures indicated more downside, which could lead to more pressure on crypto markets.
Breakout support is not provided by active addresses
An analysis of network activity growth over the August period to more than $25,000 produced bearish conclusions by analyst Philip Swift.
The creator of the analytics resource Look Into Bitcoin tweeted that address growth has not matched similar phases in price appreciation this time.
He summarized, “AASI (Active Address Sendtiment Indicator), has been indicating the fact that the current price movement has not been supported in part by a sufficient rise in active addresses on Bitcoin network.”
“Experience local highs, when this has occurred before.”
This is despite the fact that the number of Bitcoin addresses created has passed 1,000,000 this week according to data from Glassnode, an on-chain analytics firm.