GLASSNODE:BTC_NEWADDRESSES
Bitcoin: The number of unique addresses that appeared for the first time in a transaction of the native coin in the network
Following the price bubble peak in 2017 Bitcoin entered a 3-year bear market that saw prices fall from a high near $20k to a low near $3k. As price peaked in 2017, so did the number of unique addresses to appear on the Bitcoin blockchain. As price peaked in 2021, so did the number of unique addresses to appear on the Bitcoin blockchain.
If you view the number of new addresses to appear on the chain as new traders/investors entering the market and creating Bitcoin wallets, you can see that there is currently a lack of new buyers entering the market. No new buyers = no new money to sustain price growth. There is also a bearish divergence that formed as price made a double top in 2021. As price moved higher, the number of new addresses moved lower which is forecasting that price is likely to decline unless there is a surge in new addresses being created on the Bitcoin blockchain.
If you view the number of new addresses to appear on the chain as new traders/investors entering the market and creating Bitcoin wallets, you can see that there is currently a lack of new buyers entering the market. No new buyers = no new money to sustain price growth. There is also a bearish divergence that formed as price made a double top in 2021. As price moved higher, the number of new addresses moved lower which is forecasting that price is likely to decline unless there is a surge in new addresses being created on the Bitcoin blockchain.