$BTC Active Addresses refers to on-chain indicators and shows how many BTC addresses have recently sent and received transactions.
Based on the graph, it can be seen that activity on the network increases during strong movements in the price of Bitcoin, especially at the peaks of the cycle. This way we can understand when the local market peak is and take profits, and the bravest ones can turn short.
Note that Bitcoin Active Addresses signaled the end of the bull market in April 2021, not November when the current ATH was set at $69k. The hype on the futures ETF turned out to be stronger than the on-chain indicator.
Interestingly, the adoption of the spot ETF was not identified by the indicator as a local market peak. Anyone expecting a $30k return needs to be very careful.
