Bitcoin (BTC) bulls have been continuously trying reach the $20,000 price, falling just shy of what would have been a new ATH price by getting to $19,832 in the past 24 hours. Bitcoin has since nosedived and recovered to $19,268 at press time.
At the time of the Bitcoin price rally, the number of active BTC addresses was at its third-highest level, according to on-chain metrics platform Glassnode. The blockchain data provider noted:
“Almost 19.6 million Bitcoin addresses were active in November sending or receiving BTC. That is the third-highest value in Bitcoin’s history – only topped in December 2017 and January 2018.”
The rollercoaster ride experienced by Bitcoin price in November made BTC addresses either sending or receiving BTC to hit nearly 19.6 million, making the on-chain transaction volume to rise by 47%.
The number of active Bitcoin addresses broke the record in December 2017 by surging to 21.64 million, followed by January 2018, where they rose to 19.67 million, meaning that these numbers have not been seen in the recent past. November 2020, therefore, serves as a reminder of the notable levels the leading cryptocurrency can go.
The high number of active BTC addresses correlates with the fact that Bitcoin withdrawals from crypto exchanges surged to a 17-month high in November at 2,288.125. These record-breaking withdrawals were linked to investors either cashing in their profits after the BTC price hit a new all-time high of more than $19,800 on Nov 30 or others holding in cold storage wallets.
The near-record highs of active BTC addresses in November could prove to be a trigger of what awaits the leading cryptocurrency. For instance, an on-chain analyst who previously predicted the Bitcoin and stock market decoupling, Willy Woo, recently revealed a new model suggesting BTC will reach $200,000 by the end of 2021 at least, if not $300,000.
He expounded that the current re-accumulation phase coincides with the spot market inventory depletion, and is roughly two times longer and deeper than the last cycle, which could lead to Bitcoin’s price climbing higher.