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Bitcoin Falls 5% amid increased accumulation by investment

Despite continued buying from investors, Bitcoin dropped from $36,000 to $34,000 on Wednesday January 20, morning.

Investors continuing to purchase bitcoin could not save Wednesday from slipping by over $2,600 on the biggest cryptocurrency by market value.

Bitcoin fell this morning from $36,000 to $34,000 and was last seen changing hands near $34,300, according to data from CoinDesk 20, representing a 5 percent drop on the day.

As coindesk.com reported, a move below the triangle’s lower end would reveal $30,000 in support. A bitcoin range breakdown could be triggered by strength in the Dollar Index which tracks the greenback’s value against other major currencies. Since the March crash, the performance of the DXY has had a great influence on the price of bitcoin. The DXY is flat-lined at press time, near 90,50.

However, the odds seem stacked against a notable price decline, as bitcoin holders seem undeterred by the pause of the bull run and continue to grow their holdings.

According to data source Glassnode, the number of addresses carrying at least 1,000 BTC has risen from 2,407 to a current lifetime high of 2,438 in the past seven days. The increase does not necessarily imply the same rise in the number of investors, since multiple addresses may be owned by a single individual or organization.

In the meantime, in the past week, the number of bitcoins locked up in accumulation addresses rose by 30,000 to 2,739,166 BTC. Accumulation addresses are those which have at least two “non-dust” incoming transfers and have never expended funds. Dust applies to slightly small amounts of digital assets.

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Sourcecoindesk

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