Bitcoin on-chain activity is growing as a CryptoQuant analyst, known as ‘Yonsei Dent’, recently pointed out a potential golden cross in active address metrics.

This indicator tracks the number of unique addresses interacting with the Bitcoin network, providing insights into overall network activity, investor participation, and possible market directions.

Golden Cross on active Bitcoin addresses

According to Dent's analysis, applying a monthly and yearly moving average to the number of active addresses could indicate a shift towards a bullish trend. A high number of active addresses often indicates strong participation, while fewer addresses may suggest declining interest.

Dent notes that when the 30-day moving average of active addresses crosses above the 365-day moving average - a phenomenon known as the "golden cross" - it often correlates with upward price momentum in the Bitcoin market.

The correlation between this short-term and long-term trend may indicate renewed interest from both retail and institutional investors, which could sustain or even increase the value of Bitcoin.

Furthermore, Dent points out that the concept of a golden cross in active addresses is significant when considering previous market cycles.

According to CryptoQuant analysts, the last notable change in active Bitcoin addresses occurred after the all-time high (ATH), leading to the so-called "death cross," when the short-term average dropped below the long-term average.

This pattern often signals bearish sentiment or market stagnation. However, the current reversal to a golden cross suggests a different scenario. Trading volume is nearly double compared to Bitcoin's 2021 price cycle, a favorable sign indicating increased market participation and potential upward momentum.

The analyst concludes that a weaker or unclear golden cross could lead to a repeat of the trend seen in mid-2021, when price increases faced strong resistance without maintaining an upward trend.

Is BTC on track to reach $100,000?

In recent weeks, Bitcoin has witnessed a remarkable price recovery, reclaiming the price levels it once faced resistance against. So far, this asset has recorded double-digit gains in slightly higher time frames, indicating positive momentum has begun.

Specifically, in the past 30 days, BTC has increased by 13% and nearly 10% in the last 7 days. This increase has brought the asset's price to currently trade above $72,000 as of today.

This price zone has not only decreased by 2.3% compared to the ATH recorded in March 2024 but also marks an important level that makes the possibility of a price increase above $100,000 more likely.

Emphasizing this, renowned cryptocurrency analyst Javon Marks notes that with Bitcoin so far holding above $67,559, the upward momentum to $116,652 is ongoing.

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