As a seasoned researcher with a decade-long experience in the financial markets, I’ve witnessed many bull runs and market cycles, but none quite as captivating as the one Bitcoin is experiencing right now. The latest surge in Bitcoin price, pushing it to almost $69,000, has certainly piqued my interest.
Bitcoin‘s price and its bullish trend seem to be gaining momentum once more, as it posted its strongest weekly growth in a month. Initially, Bitcoin started the week rather calmly, maintaining around $63,000. However, it gathered renewed bullish energy midweek, causing its value to surge nearly up to $69,000 by Friday.
Recent observations show that the activity within the Bitcoin network has been increasing noticeably over the last several weeks. This trend may have played a role in the recent rise in Bitcoin’s price, but one must wonder – how high could this momentum take the worth of the pioneering digital currency?
Golden Cross Could Push Bitcoin Price Past $73,737
In a recent post on the CrypoQuant platform, an analyst going by the name Yonsei_dent has hinted at a potential increase in Bitcoin’s price. This optimistic prediction is derived from the rising trend of active addresses, which refers to the count of unique addresses demonstrating substantial activity within the Bitcoin network.
Tracking the rise in the count of these active addresses provides valuable information about network activity, investor actions or feelings, and broader market movements. By analyzing the rate at which these distinct addresses are growing, using moving averages (MAs) across different timeframes, can be a helpful tool for determining current price patterns.
In their recent study, a CryptoQuant analyst used a 30-day and a 365-day average of Bitcoin active addresses to measure its growth rate. As you can see in the graph below, the 30-day average has experienced a significant increase over the last month and seems to be nearing the 365-day average.
Based on Yonsei_dent’s analysis, if the 30 Day Moving Average (DMA) eventually surpasses and intersects with the 365 DMA from below, it could signal a strengthening bullish trend for Bitcoin, often referred to as a “golden cross” in crypto terminology. This pattern is identified by a shorter-term moving average rising above a longer-term moving average, signifying a potential increase in price.
Generally speaking, when you see a “golden cross” on the chart, it often suggests the beginning or resumption of a prolonged upward trend in the price of Bitcoin. In other words, this pattern might be an indication that Bitcoin’s price is preparing to surge towards its previous record high of $73,737.
‘Bitcoin Is Establishing An Upward Structure’ — Here’s How
Currently, the price of Bitcoin stands approximately 7% below its all-time high. Based on information from CoinGecko, the leading cryptocurrency is worth around $68,540 at present, representing a 2% rise over the last 24 hours.
Based on Yonsei_dent’s analysis, Bitcoin’s price has been steadily creating higher peaks and lower valleys since July, indicating a “bullish market trend.
Keep in mind that the ups and downs seem to form a “rising wedge” chart pattern, potentially indicating a decrease in the value of Bitcoin.
Read More
Sorry. No data so far.
2024-10-19 16:16