Bitcoin Wallet Metrics Point to $100K Potential, Says Santiment

Bitcoin wallet metrics show a -1.9% return, the lowest average wallet returns since the start of the bull rally on October 10.

Bitcoin’s Active Wallets Show -1.9% Return, Suggesting Many Traders in Losing Positions

Bitcoin’s average returns (based on wallets making at least 1 transfer in the past 30 days) show a -1.9% return, despite BTC’s all-time high happening just over 30 days ago.

This suggests that many traders, particularly those who entered during the euphoria after Bitcoin’s all-time high, now have losing positions.

Bitcoin’s Price Surge and Declining Investor Interest

Bitcoin’s price has surged by 61% since mid-October, showing that the market is continuing to push higher, even as a key metric of investor interest is declining.

The 30-day Market Value to Realized Value (MVRV) shows that the market puts the average active wallet at a low point, indicating that many traders are losing money. Historically, when the MVRV metric dips into negative territory, it can signal an opportunity for investors to buy while others face losses.

New Address Creation Reflects Ongoing Interest

Despite the decline in wallet activity, Bitcoin continues to attract new participants. IntoTheBlock data shows 364,870 new addresses were created in the past week, indicating that interest in Bitcoin remains strong.

However, the growth in new addresses has slowed by 10.14% compared to the previous week.

Furthermore, the number of active wallets making transactions has remained stable, with 899,370 addresses recorded. This marks a decrease of 0.23% from the previous week.

The biggest change is the increase in zero-balance addresses, which saw a 14.55% rise, reaching 401,690.

Bitcoin’s Key Support and Resistance Levels

IntoTheBlock also provides insights into Bitcoin’s support and resistance zones.

The blockchain analytics platform identifies a critical support zone below the $100,000 mark, where approximately 1.45 million BTC were acquired at an average price of $97,500.

This accumulation, valued at $141.37 billion, indicates strong demand in this price range, which could help stabilize the price if selling pressure increases.

On the resistance side, there is minor selling activity just above current levels.

The closest resistance zone is between $102,351 and $102,458, although its relative weakness suggests that Bitcoin could experience upward momentum if buying activity strengthens.

The abovementioned levels could serve as crucial points of interest for traders and investors monitoring Bitcoin’s price action.