Bitcoin’s Active Addresses Signals Golden Cross—What Next For BTC?

by

As an experienced analyst with a deep-rooted understanding of the crypto market, I find Yonsei Dent’s analysis intriguing and potentially insightful. The golden cross in active addresses, a pattern that has historically signaled bullish momentum for Bitcoin, is indeed a promising development. However, history doesn’t always repeat itself, and we should keep an eye on potential resistance levels or market stagnation as mentioned by the analyst.

The number of transactions on the Bitcoin blockchain is increasing significantly, according to a well-respected analyst from CryptoQuant, who goes by ‘Yonsei Dent.’ He has identified a possible ‘golden cross’ in the active addresses data, suggesting a potential bullish trend.

This metric monitors the count of distinct wallets interacting with the Bitcoin system, offering glimpses into the general hustle and bustle, investment interest, and potential future trends within the network.

Golden Cross On Bitcoin Active Addresses

Based on Dent’s examination, using a monthly and yearly moving average for the count of active addresses might signal a transition towards bullish trends. High numbers of active addresses usually signify robust involvement, whereas lower numbers could suggest waning interest.

As a crypto investor, I’ve observed that when the 30-day average of active Bitcoin addresses climbs over the 365-day average (a situation called the “Golden Cross”), it usually signals positive price movement in the Bitcoin market.

The harmony between immediate and future patterns might indicate a resurgence of curiosity among individual and corporate investors, possibly maintaining or boosting the worth of Bitcoin.

Moreover, Dent emphasized that the golden cross in active addresses plays a crucial role when considering past market trends.

Based on an analysis by a CryptoQuant expert, a significant change in the number of active Bitcoin addresses was observed after reaching record highs. This shift resulted in a situation known as a “dead cross,” where the short-term average of these active addresses dropped below the long-term average.

In simpler terms, this pattern often indicates either pessimism or no movement in the market. But right now, a change known as a ‘golden cross’ is happening which suggests a different situation. Furthermore, trading activity is nearly twice as high as it was during Bitcoin’s price surge in 2021. This increased engagement and heightened trading volume could be an indicator of potential growth.

The expert found that a less definitive or ambiguous “golden cross” might cause a resurgence of the price patterns seen in mid-2021, where price increases encountered robust opposition and failed to sustain an uptrend.

BTC On Track For $100k Rally?

Over the past few weeks, Bitcoin’s price has significantly bounced back, even reaching levels where it previously met resistance. This upward trend indicates that the asset could be experiencing a favorable movement based on its performance in longer periods, showing gains of over 10%.

Specifically over the last month, Bitcoin has risen by approximately 13%, and within the past week, it has climbed almost 10%. This growth has pushed the asset’s current value to surpass $72,000 as we speak today.

In simple terms, this price range represents a 2.3% drop compared to its all-time high recorded in March 2024, and it’s a crucial level that significantly increases the likelihood of surpassing the $100,000 mark.

According to well-known cryptocurrency expert Javon Marks, as long as Bitcoin remains above $67,559, it’s possible that we could see a rise to $116,652.

Bitcoin (BTC) has just reached the highest 3-day closing price it’s ever had, and it’s currently maintaining itself above a crucial point of $67,559.

Reaching the current level indicates that the target of $116,652 could potentially be reached, given technical analysis, which suggests there’s still a possibility for a 61.2% increase from the present position!

— JAVONMARKS (@JavonTM1) October 30, 2024

Read More

2024-10-31 09:04