Analysts of the cryptocurrency exchange Bitfinex have published a 44-page long report on the general state of Bitcoin.
Bitfinex Analysts Argued That The Bitcoin Market Is In Transition
According to analysts in the report, although the number of active addresses on the Bitcoin network and the number of daily transactions are falling, Bitcoin's non-zero balance addresses are reaching new highs.
Analysts argue that this indicates that the market is in a transitional period, and they say that caution should be exercised in the face of this situation.
According to the details shared in the report, Bitcoin continues to be in great demand, with non-zero-balance wallets topping over 45 million.
Commenting on Bitcoin price in the report, analysts suggest that investors may need to be a little cautious in the short term.
According to on-chain data, the number of addresses with balance reached 45.3 million last week, and the Bitcoin price remained above $27,000, closing the first quarter with a rise.
However, apart from this positive outlook, other metrics suggest that bulls may need to be cautious in the short term. In their report, analysts describe the situation that the market is in transition as follows:
“A transitional state is characterized by volatile market conditions where the price consolidates within a narrow range before trending in either direction. Despite the influx of new entrants to the market, the sustainability of this phenomenon, which consists of a tight transaction window for both fast-growing balance wallets and Bitcoin, remains unclear.”
Bitfinex analysts suggest that as both the bulls and bears remain undecided, other metrics suggest that the Bitcoin price may continue to consolidate around $28,000.
*Not investment advice.
