Active Addresses refer to the number of unique addresses on the BTC on-chain network that show significant activity. This metric allows us to understand the activity level on the BTC network, investor participation, and market trends.
By applying the 🔴monthly moving average (30DMA) and the 🔵annual moving average (365DMA) to this metric, we can observe the momentum. Historically, when the 30DMA strongly crosses below the 365DMA (death cross), the market has passed the cycle top and entered a bearish phase.
In the current cycle, the death cross has persisted since the all-time high (ATH). Although the decline is not steep enough to definitively declare a bear market, it is important to be cautious of a potential deepening correction. If the 30DMA drops further, it would be prudent to prepare for a macro bearish reversal.
Written by Yonsei_dent