The current moment is not the best for BTC, which is struggling to get back to the $40,000 level. Despite this, there have never been as many wallets containing BTC as there are today.
According to IntoTheBlock, the number of BTC addresses set a record of almost 40 million this Monday.
Record Holders — The number of addresses holding $BTC continue setting new records.
BTC addresses with a balance reached a record of nearly 40 million.
Even as BTC has remained on a downwards trend in 2022, the network added a total of 888,000 new addresses with a balance.
As mentioned earlier, BTC got off to a rough start in 2022. Since the 1st of this year, the price of the biggest cryptocurrency on the market has dropped by approximately 20%.
BTC up or down?
According to analyst Akash Girimath, BTC price dropped into the $36,398-$38,895 demand zone for the fourth time without producing higher rallies.
“This price action is indicative of a consolidation and is likely to hit lower levels. A daily candle close below $36,398 will invalidate the demand zone and bring BTC down to retest the weekly support level at $34,752, which is the last line of defense,” the analyst stated.
Girimath further said that a breakout of this barrier will pave the way for BTC price to drop to $30,000.
In that case, BTC could drop further to $29,100 to collect liquidity below 2021 lows.
In the worst case scenario, it would be a drop of almost 25% from the current price. It is worth noting that BTC is already 43% below the all-time high of around $69,000 reached in November 2021.