Even though the Bitcoin price has shown signs of recovery lately, not everything indicates the trend will last. A sudden 24% price increase will meet a correction of sorts sooner or later. Two crucial metrics show that correction may occur sooner rather than later, particularly with the weekend around the corner.
Rising Sending Addresses Hint At Correction
The Bitcoin network offers several crucial metrics for users to keep an eye on. Some of these metrics may have a more significant impact on the price momentum than people initially expect. For example, anything involving miner-related activities is worth keeping tabs on, for better or worse. Moreover, the sending addresses activity can also determine where things may head next for the world’s leading cryptocurrency.
Per Glassnode, there is a substantial increase in sending address activity. More specifically, the number of sending addresses is at a 4-month high again. Of course, that doesn’t mean people are sending funds to exchanges and other trading platforms, but it merely depicts heightened network activity. Whether that is good or bad for the price remains uncertain for now.
However, one can assume some of these “extra” transactions involve exchanges and trading platforms. That can be a good sign, as bitcoin is designed to be a payment solution first and foremost. Unless people use it as such, Bitcoin will never achieve the status of “money” in the masses’ opinion. Therefore, more network activity is a good thing, even if it might impact the price in some way.
Moreover, it remains unclear if exchanges themselves fuel this increase in sending addresses. It is not uncommon for trading platforms, wallets, and other providers to shuffle cold storage funds around a bit. It doesn’t mean there are unique users moving funds across the network, although there will be some changes on that front. For now, this metric alone isn’t sufficient to trigger a Bitcoin price correction.
Rising Miner Outflow Volume Is A Concern
Another sign of a potential upcoming Bitcoin price correction is the miner outflow volume. When miners begin cashing out, there is likely to be more BTC price pressure. That trend seems to repeat itself like clockwork; thus, some market resistance seems on the horizon for Bitcoin. However, weekends are traditionally bearish, and it seems miners will do their best to help with an upcoming correction.
The current miner outflow volume represents a monthly high. That is not too concerning yet, although it remains to be seen if and when this trend flattens out. If the rates keep going higher, it will set a multi-month high. From that point forward, all bets are off, and a bearish Bitcoin correction becomes more likely. The upcoming weekend will prove interesting for many different reasons, by the look of things.