March has been dynamic for Bitcoin: the network saw significant growth in smaller wallets, indicating persistent confidence in the cryptocurrency.
Wallet Growth Accelerates
Bitcoin surpassed $90,000, defying increasing volatility. The network experienced notable growth, with 50,000 more wallets than the previous month. Santiment's analysis reveals 37,390 additional wallets hold less than 0.1 BTC, with 12,754 more wallets holding between 0.1 and 100 BTC. Meanwhile, wallets holding 100 BTC have declined by six, potentially indicating profit-taking by large holders. Despite this, smaller investors continue accumulating Bitcoin, overlooking market fluctuations.
Key Levels to Monitor
The market faces the second significant capitulation event in the current Bitcoin cycle. A critical level to monitor is $92,000, representing the Short-Term Holder Cost Basis, which could signal local momentum shifts. If Bitcoin declines further, the $71,000 region emerges as a major support level, validated by multiple technical and on-chain indicators. Defending this zone will be crucial for bulls to avert further downturns and maintain confidence in Bitcoin's recovery potential.
Long-Term Outlook
Despite increased selling pressure, the rise in smaller wallets signals ongoing adoption and trust in Bitcoin's long-term potential. According to Glassnode, the market continues to struggle with intense selling pressure, with daily losses peaking at $818 million. Yet, the growing presence of smaller investors reflects faith in the cryptocurrency's future.
The increase in smaller Bitcoin wallets indicates continued adoption despite market conditions. Maintaining key levels will be crucial for determining future direction.
