Bitcoin (BTC) Daily Addresses Plunge As Whales Take Profit, But Toncoin Continues To Climb

Bitcoin has seen a sharp decline in daily active addresses as whales trigger the third phase of profit-taking in the current market cycle. While the price of Bitcoin has dropped by more than 6.6% from its all-time high, some analysts have argued that its price could still see more gains.

While Bitcoin has recorded some price drops, Toncoin (TON) has been on a strong uptrend fueled by a spike in spot inflows and a bullish breakout. The price of Toncoin has reclaimed the $3.4 resistance, with analysts setting targets as high as $6.9 for the altcoin.

Bitcoin Daily Active Addresses Plunge Amidst Profit Taking

For more than two weeks, the Bitcoin price has been trading sideways between $115,000 and $120,000. Amidst this sideways trading, there has been a massive drop in daily active users. 

Per data from Santiment, the number of daily active Bitcoin addresses has dropped from as high as 800,000 in early July to just 380,000 by July 31.

The drop in Bitcoin’s active addresses comes at a time when whales are taking profit from the last major move. CryptoQuant explained that the latest sell-off suffered by BTC was driven by “new whales,” who took profit once the Bitcoin price crossed the $120,000 mark.

Although the number of daily active addresses declined, analysts are very confident that Bitcoin is in a bull market. BitBull, who was left wondering why investors have become bearish, has said there was the perfect breakout of the inverse head and shoulder pattern recorded by Bitcoin.

However, the analyst expects the price of Bitcoin to drop briefly to the $114,200 level, where it would bottom. Bouncing off this bottom, BitBull expects the Bitcoin price to cross $164,000 in its next leg up. Another analyst, CryptoGems, shared a similar Bitcoin price prediction, setting his target at $150,000.

Toncoin (TON) Gains Traction After Bullish Breakout

While Bitcoin and most of the crypto market have been in consolidation, Toncoin (TON) has recorded a bullish breakout. As a result of the breakout, the price of Toncoin has increased by more than 15% from its weekly low of $3.0 to trade above $3.45.

The Toncoin price briefly tested the $3.70 resistance as spot net inflows skyrocketed to $5.59 million on July 31. It is the most significant TON accumulation on one day in several weeks. The number of new and daily active addresses that interact with the Toncoin network has been rising strongly.

Over the past week, the new demand of TON has grown by 38%, according to IntoTheBlock. Also, the active addresses increased by 51%. With the growing network activity, analysts have predicted a potential extension of the current Toncoin price rally.

CryptoBull_360 explained in an analysis that Toncoin has shown strong potential for a breakout rally above the 200MA on the 1D chart. The technical expert believes that the price of Toncoin will soar to the $5 price region. However, Crypto Yoddha believes the altcoin price could rally to a new ATH as it moves to the up end of an ascending channel.

Conclusion

Although the Bitcoin daily active addresses have been on a decline, there are signs that the price of the leading cryptocurrency could continue rising. In contrast, all signs point towards Toncoin extending its current rally, with short-term targets between $4-5.