The price of Bitcoin has been hovering around the $10,000 for the past month, but on-chain data shows a rising number of new participants joining the network
The price of Bitcoin has seen a slowdown since the start of September, trading around the $10,000 region for the past month. The leading cryptocurrency is finding it hard to cross the $11,000 barrier as the price has stabilised over the past few weeks.
Bitcoin was trading at $12, 314 on August 17 but settled at the $10,000 region at the beginning of September — since then, BTC has found it hard to reach and stay above $11,000.
New participants joining the Bitcoin network
However, despite the stagnated price, on-chain data shows that new participants are joining the Bitcoin network at a fast rate. The increasing number of network participants hasn’t reflected in the price of Bitcoin at the moment. Analyst Willy Woo believes that an increase in price should be expected as the rising number of new participants is a bullish indicator.
Woo tweeted yesterday that there is a spike in activity in new participants joining the BTC network, which hasn’t reflected in the cryptocurrency’s price. “It doesn’t happen often. This is what traders call a divergence, in this case, it’s obviously bullish,” he added.
The Bitcoin network has been experiencing an influx in the number of new participants since last week. The massive entry into the Bitcoin network saw September numbers surpass that of August. Woo further tweeted that “We’re seeing another impulse of coins changing hands completely. My interpretation is that the last pulse was take-profit, halting the downward move; this impulse should be the one that drives us upwards.” The analyst is optimistic that the price of Bitcoin is going upwards as the Bitcoin network experiences increased transaction levels.
Traders are looking for safer alternatives
Some analysts claim that the major reason behind the increasing number of new entries into the Bitcoin network is the strong pullback in altcoins and DeFi token prices. In September, several DeFi tokens and altcoins recorded double-digit losses, possibly convincing some investors to look for safer alternatives in the cryptocurrency market.
The price of Bitcoin found it extremely hard to break past the $11,000 barrier, but it has maintained its trading price above $10,000 for the past month. It is still unclear if the increasing entry of new market participants could see Bitcoin’s price cross the $11,000 barrier soon to stabilise above a new price level.