BTC On-Chain Analysis January
Key Insights
- This January we saw a decrease in Bitcoin price growth and it’s number of transactions, notably the large transactions (> $10m)
- Number of total BTC addresses and balance by holdings stay at a relatively same level
- The Bitcoin Rainbow Price Chart indicator is used to analyse the bitcoin price dynamics
Our focus in the on-chain BTC analysis is number of transactions, BTC transaction volume, BTC total addresses, and BTC balance by holdings, and we’re using Bitcoin Rainbow Chart as an indicator.
Number of BTC Transactions
During January, there was a gradual decrease in the number of transactions in the Bitcoin network. It decreased from a maximum of 731.35 thousand to a minimum of 340.19 thousand. This reduction in the number of BTC transactions coincided with a slowdown in price growth and a 20% correction in the BTC exchange rate.
Bitcoin's 20% price correction may have an impact on transaction activity. Market participants can wait for price stabilization and assess the situation before making new transactions.
BTC Transaction Volume in USD by Size
There has been a significant decrease in large transactions. BTC volume > $10m decreased by more than 30%.
This may indicate a decrease in activity of large players. In addition, this reduction may indicate a reallocation of capital or a preference for smaller transactions at the moment.
Total BTC Addresses
During January, the number of Bitcoin addresses remained at approximately the same level. The minimum value was 51.42 million and the maximum was 51.93 million.
This may indicate the stability of interest in bitcoin among network participants and the absence of major shifts or changes in their behavior. This may be due to the market's optimistic forecasts regarding the price of BTC.
BTC Balance by Holdings
There is stability of balances of BTC holders, manifested in the following changes.
Increased interest of small holders (0 - 0.001 BTC): -0.84%
- Increase in interest of small holders (1 - 10 BTC): -0.10%
- Increase in the share of large holders (10k - 100k BTC): +3.69%
- Increase in the share of the largest holders (> 100k BTC): +0%
This data indicates that small holders partially decreased their Bitcoin holdings, while large holders increased their holdings and the largest holders kept their balances unchanged.
Bitcoin Rainbow Price Chart Indicator
The Bitcoin Rainbow Price Chart indicator analyzes Bitcoin price dynamics based on different time periods and price levels represented as rainbow colors.
According to its indicators, the current price of BTC continues to be in a favorable zone for buying and further holding the asset. This means that at the moment, investing in Bitcoin and holding it in a portfolio is seen as a promising solution with a high potential for value growth.
In light of the data presented, Bitcoin (BTC) investment outlook and holding looks reasonable and even promising.
- Number of BTC transactions
The decline in the number of transactions on the Bitcoin network could be the result of a 20% price correction. However, it could also indicate a wait for the price to stabilize before new BTC transactions, which could be a positive factor for holding BTC.
- Transaction volume by size
A decrease in large transaction volume by more than 30% could be an indicator of a temporary decrease in activity by large players. However, a preference for smaller transactions could help decentralize and spread BTC ownership.
- Number of addresses
A stable number of Bitcoin addresses indicates a continued interest of network participants in the asset, which may be related to the market's optimistic outlook on the price of BTC.
- Balance of Holders
An increase in the share of large holders, along with the continued stability of the largest holders' balances, indicates confidence in the retention of BTC among large investors. At the same time, small changes in the share of small holders may be the result of temporary factors.
- Bitcoin Rainbow Price Chart indicator
The analysis of BTC price dynamics shows a favorable zone for buying and holding the asset, which confirms the potential growth of its value in the future.
Summary
With transaction volume and number of transactions decreasing, number of BTC addresses is stable, while balance of holders sees increase in number of of the share of large holders.
On this basis, investing in Bitcoin and holding it in a portfolio is currently assessed as a promising decision, especially given the long-term trends and optimistic market forecasts.
Users can get BTC for fiat or crypto on SimpleSwap.
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