Active Addresses refer to the number of unique Bitcoin addresses showing significant on-chain activity. This metric offers insights into network activity and investor participation. By analyzing the indicator’s 🔴 monthly moving average and 🔵 annual moving average, market momentum becomes apparent. When a golden cross forms, it often signals upward price momentum.
In early November, Active Addresses recorded a golden cross, which is currently hovering at the 1M level. For comparison, this metric peaked at 1.28M in 2017 and 1.36M in 2021 during Bitcoin’s price surges. Given that Active Addresses tend to reach their highest levels near cycle peaks, there’s a possibility that the current metric still has room to grow. Additionally, the number of transactions is notably robust, maintaining levels about twice those of the 2021 cycle—another positive sign.
An important catalyst in this rally has been the introduction of Bitcoin ETFs, which have played a significant role in supporting prices. As fresh capital flows into ETFs, it has helped absorb the selling pressure from profit-taking investors, thereby defending the price during corrections.
📌 While Active Addresses reflect the overall activity within the Bitcoin network, ETF holdings indicate whether institutional capital is entering the market. If both metrics continue to rise, Bitcoin’s upward trajectory may gain further momentum.
Written by Yonsei_dent
