The number of non-empty wallets on the Bitcoin network has fallen by more than 100,000 since Oct. 16. Blockchain outlet U.Today reported on Monday that as the Bitcoin price slipped below $75,000, small holders continued to exit.
Non-empty wallets peaked at 59.99 million on Oct. 16 and have fallen by about 108,700. They now stand at about 59.88 million. Small holders are showing a trend of consolidating wallets or emptying them. The drop in wallet numbers, however, does not directly mean a decline in Bitcoin use.
Price action is also weak. Bitcoin made a short-term rebound to the $80,000 to $81,000 range in early November but failed to hold gains and slid to the $76,000 range. That is down about 14 percent compared with the October high near $87,000. It has also given back most of the gains built up since late August.
Technical indicators are also adding to the burden. Bitcoin is trading below major moving averages, and the moving averages are generally pointing lower. The relative strength index is around 40, suggesting bearish momentum or at least a sideways trend.
The market is focusing on the $74,000 to $75,000 range. This zone has been presented as the nearest support level where buying already came in this week. Even if $74,000 holds, there are few signs that bullish buying will return immediately. There is also little indication that retail investors are returning enough to push prices back up to key levels.
Even if a rebound emerges, the range that must be recovered first is $78,000 to $80,000. Several moving averages are clustered in this range. Exchange-held balances have fallen to about 1.28 million BTC.
The decline in wallet numbers while prices hold near support can be interpreted as a capitulation phase for small investors. As fear grows, small investors tend to leave the market first. The key is whether $74,000 holds. Bitcoin remains below major moving averages, and a short-term rebound alone is unlikely to change the overall trend.
