• Bitcoin’s wallet returns are down 1.9%, signaling losses for many traders since October.
• Despite the price rise, the MVRV metric shows many traders are currently at a loss.
• New Bitcoin addresses keep growing, but the pace has slowed by 10% in the past week.

As of December 2024, Bitcoin’s active wallets show a -1.9% return, marking the lowest average wallet returns since the start of the bull rally on October 10.

This suggests that many traders, particularly those who entered during the euphoria after Bitcoin’s all-time high, now have losing positions.

Bitcoin’s Price Surge and Declining Investor Interest

However, Bitcoin’s price grew by 61% since mid-October, which shows that the market continues to push higher, even as investor interest declines.

The 30-day Market Value to Realized Value (MVRV) shows that the market puts the average active wallet at a low point, indicating that many traders are losing money. Historically, when the MVRV metric dips into negative territory, it can signal an opportunity for investors to buy while others face losses.

New Address Creation Reflects Ongoing Interest

Even though wallet activity is down, Bitcoin continues to draw new participants. IntoTheBlock data shows 364,870 new addresses were created in the past week, which means interest in Bitcoin remains strong. But the growth in new addresses has slowed by 10.14% compared to the previous week.

Also, the number of active wallets making transactions has remained stable, with 899,370 addresses recorded. This is a decrease of 0.23% from the previous week. The biggest change is the increase in zero-balance addresses, which saw a 14.55% rise, reaching 401,690.

Read also: Bitcoin Wallet Metrics Point to $100K Potential, Says Santiment

Bitcoin’s Key Support and Resistance Levels

More insights into Bitcoin’s support and resistance zones come from IntoTheBlock. The blockchain analytics platform identifies a critical support zone below the $100,000 mark, where approximately 1.45 million BTC were accumulated at an average price of $97,500.

This accumulation, valued at $141.37 billion, indicates strong demand in this price range, which could lead to price stability if selling pressure increases.

On the resistance side, minor selling activity is just above current levels. The closest resistance zone is between $102,351 and $102,458, though its relative weakness shows that Bitcoin could see upward momentum if buying activity strengthens.