Analyst ‘Yonsei Dent’ from CryptoQuant believes Bitcoin’s on chain activity is looking up, and we could see a golden cross in its active addresses metric.
Your measure, which is the number of different addresses that interact with the Bitcoin network, gives you an idea of how much of the network is actually being used, and how active investors are following and interacting with it.
According to Dent’s analysis, it also frequently precedes movement in the Bitcoin market to the upside, when the 30 day moving average outshines the 365 day moving average, otherwise known as a golden cross. A large number of active addresses usually means (robust) participation, and a decrease may mean (waning) interest.
Bitcoin Price Rebounds Strongly
Short-term and long-term trends getting aligned may mean that both retail and institutional investors are interested in Bitcoin once again, and sustaining or propelling Bitcoin’s value. Otherwise, this golden cross has proved significant during previous market cycles, said Dent.
The last major change of Bitcoin’s active addresses coincided with its all time high (ATH) he said, which resulted in a ‘dead cross’ where his short term average became lower than long term average, a usually bearish or stagnation signal. But this golden cross shift is different than that pattern, as transaction volumes are close to twice the level of BTC 2021 price cycle.
Recently, BTC has experienced a pretty nice price rebound over previous resistance levels. In past 30 days BTC gained 13%, in the previous week – 9%, trading above $72,000 as of today. While this price point is a 2.3% decrease from ATH in March 2024, it is an important price point that could result in almost $100,000 after the price has spiked over this level.
As long as BTC is above $67,559, Javon Marks pointed out that the chance of reaching $116,652 persists.
