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Chart of the Day

After finding solid support at the $53.5k level over the weekend, BTC started a fresh round of upside movement to the $57k level, and has now recovered most of its losses from the Black Friday plummet. This momentum has sparked a breakthrough above a key bearish trendline on the hourly chart, and is now fueling a retest of the $58k resistance zone. Of course, it may take more than just price action to soothe all the wrangled nerves from the weekend, so it is important for us to consider everything in perspective. Said Black Friday plummet, as sudden as it seemed, actually constitutes the least severe correction in 2021 in terms of BTC's percentage drop from all-time highs. Additionally, price action notwithstanding, on-chain data also hints at a relatively rosy future for BTC — the number of active BTC addresses with a balance of more than 0.01 BTC has reached an all-time high, while the number of addresses with more than 100 BTC continues to trend down from the 2017 market top. This suggests a possible redistribution of BTC from whales to retail traders as BTC continues to become increasingly decentralized, and also points toward the fact that BTC is rapidly gaining traction amongst the masses.