• Bitcoin price is facing potential drop to $24k as it struggles to maintain bullish momentum.
• Unique Bitcoin addresses hit a 22-month low, signaling declining demand.
• Litecoin gains traction with increased active addresses and rising value.
Bitcoin Price Struggles To Maintain Bullish Momentum
The top digital asset, Bitcoin (BTC), has recently struggled to maintain a bullish outlook following a profitable Q1 for the miners and holders. Trading around $27.36k on Thursday, up 2.1 percent in the past 24 hours, Bitcoin price is on the cusp of dropping further toward $24k. Furthermore, technical analysis on the higher time charts shows Bitcoin price is trading below the neck of a head and shoulder candlestick pattern.
Unique Bitcoin Addresses Hit A 22-Month Low
The number of unique Bitcoin addresses is an important factor when analyzing the overall demand for Bitcoin in the global market. According to a report by market intelligence platform Santiment, the number of unique Bitcoin addresses has been decreasing in recent months and recently hit a 22-month low below 800k amid the rise of BRC-20 tokens..
Litecoin Gains Traction
As demand for Bitcoins decreases, Litecoin saw an increase in its overall active address numbers. The upcoming halving event also caused an uptick in its daily traded volume and underlying value as investors anticipate a surge in prices post halving events due to reduced supply of coins entering circulation.
Bitcoin Market Analysis & Future Outlook
Liquidity in the crypto market has been thinned due to global political differences which have led to many US off ramp services being shut down or restricted; reducing USD liquidity for crypto transactions significantly. Altcoin liquidity has fallen by about 17 percent over the last month compared with 4 percent and 2 percent for Ethereum’s ETH/USD pair and BTC/USD pair respectively according to Kaiko data aggregator platform..
Conclusion
Bitcoin faces potential drop below $24K as it struggles to maintain bullish momentum with declining demand indicated by falling unique addresses while Litecoin gains traction amidst rising active addresses and increasing value ahead of its halving event. The cryptocurrency markets have seen reduced liquidity due geopolitical influences leading to decreased USD off ramp services and altcoin liquidity dropping by 17%.