Bitcoin bottomed out at $16,000

Over the past few weeks, bitcoin volatility has held at a two-year low.

The largest digital currency by the end of 2022 was able to find the bottom in the region of $16,000.

The main factor signaling that the bottom has been reached was an increase in the number of unprofitable addresses on the network. This share exceeded 50% by the end of December.

BTC met the year 2023 at values above $16,000, the coin is trying to approach $17,000 and may break the resistance in this area today.

A similar situation was observed in January 2015 and 2018. Analytics don’t rule out drawdowns in the coming weeks, but bitcoin is unlikely to face a rollback below $16,000.

At this stage, traders do not seek to increase capital investments in BTC, data from BitInfoCharts indicate a weakening of their activity.

The average daily number of transactions on the blockchain fell to 187,361 the day before — this is the lowest level since January 2022.

Analysts drew attention to the weakening of whale activity last week. In their opinion, a sharp drop in the number of transactions (in the amount of $ 1 million) signals that there will be no large bitcoin movements in January.