In March, Bitcoin’s network expanded by 50,000 wallets despite market volatility. Smaller investors are increasing their holdings, while larger holders show signs of profit-taking. The market faces intense selling pressures, highlighting significant losses, with crucial price levels around $92,000 and $71,000 needing close monitoring to gauge future movements.

In March, Bitcoin has experienced significant volatility yet demonstrated strong network growth, reflected in the addition of 50,000 new wallets. Analysis by Santiment reveals that 37,390 wallets now hold under 0.1 BTC, and 12,754 contain between 0.1 and 100 BTC, indicating increasing participation among smaller investors. Conversely, the number of wallets holding at least 100 BTC has decreased, suggesting some larger stakeholders are cashing in on their investments.

As smaller investors continue to accumulate Bitcoin, the overall market has faced substantial selling pressure this year, as reported by Glassnode. The data indicates that significant sell-offs, occurring across all wallet sizes, have resulted in a high selling activity, with realized losses reaching $818 million daily, marking one of the largest exoduses since mid-January.

The potential for further price changes relies on certain key levels. Glassnode highlighted the current state of volatility and price contraction across digital assets, suggesting a significant capitulation event in Bitcoin’s lifecycle. Investors should monitor the $92,000 level, which indicates the Short-Term Holder Cost Basis, and the $71,000 support level, as defending these thresholds is critical in sustaining bullish sentiment and averting deeper declines.

In summary, while March has brought notable volatility to Bitcoin, the addition of 50,000 wallets demonstrates a growing interest, particularly among smaller investors. Despite intense selling pressures leading to significant losses, the data suggests ongoing adoption and confidence in Bitcoin’s future. It’s essential for investors to observe key price thresholds, which could indicate future market movements and overall sentiment in the cryptocurrency landscape.

Original Source: cryptopotato.com

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