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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Data: Number Of Active Entities Remain In Bear Market Channel

Keshav Verma
Keshav Verma
1 year ago
3 mins read
Bitcoin

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Data shows the number of active Bitcoin entities has been steadily going up, but the growth pattern still remains in the bear market channel.

Number Of Active Bitcoin Entities Continues To Remain In Bear Market Channel

As per the latest weekly report from Glassnode, the number of active BTC entities has observed a persistent user growth recently.

The “number of active entities” is an indicator that tells us about the number of daily active users on the Bitcoin network.

An entity here refers to a collection of addresses held by a single investor, so the number of entities isn’t the same as the total number of addresses on the network.

When the value of this indicator rises, it means more holders are making trades right now. A sharp growth can suggest a large number of new investors are ushering into the Bitcoin market.

On the other hand, decreasing values of the metric implies interest around the crypto is diminishing as investors go dormant.

Related Reading | On-chain Data Suggests Bitcoin Miners Were Behind The Selloff

Now, here is a chart that shows the trend in the number of active Bitcoin entities over the past several years:

Bitcoin Number Of Active Entities

Looks like the metric has observed some growth recently | Source: Glassnode's The Week Onchain - Week 15, 2022

As you can see in the above graph, the number of active Bitcoin entities has been steadily going up in recent weeks.

However, the value of the metric is still within a range that the report refers to as the “bear market channel.” As the name suggests, the indicator is usually inside this range during bearish periods where a persistent user growth is observed, but nothing too explosive.

During the bull market hype, on the contrary, the number of active entities usually shows a very rapid rise. But near the peak, the indicator also crashes down sharply.

Related Reading | Price Of Bitcoin Retreats Under $42,000 As Enthusiasm From Miami Event Fizzles

Recently, the trend has been that of a sharp growth in the Bitcoin active entities, but as pointed out earlier, the current value is still at the upper end of the bear market channel

Nonetheless, the report notes that any expansion here would mean the indicator will finally escape this range, something that could prove to be constructive for the price of the coin.

BTC Price

At the time of writing, Bitcoin’s price floats around $40.4k, down 14% in the past week. Over the last month, the crypto has gained 3% in value.

The below chart shows the trend in the price of the coin over the past five days.

Bitcoin Price Chart

Bitcoin seems to have plunged down over the last couple of days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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