Key Points
- Bitcoin’s active addresses haven’t reached 2021’s peak, suggesting a potential bullish trend.
- Positive volume pressure indicates the possibility of higher Bitcoin prices.
Bitcoin’s Potential Bullish Trend
Bitcoin’s recent rise to a new high was a positive development for the market, but some believe that the $69,000 mark is just a fraction of how high the price can go.
One such analyst is Crypto Dan, a Korean investor who shared his analysis focusing on Bitcoin’s active addresses on CryptoQuant.
Active addresses are a measure of user interaction with a project. If this metric increases, it implies a high level of transaction within the blockchain. Conversely, a decrease suggests a low daily level of speculation.
Active Addresses and Market Cycles
Dan’s analysis highlighted that active addresses usually rise twice in a cycle – at the end of a bear market and the beginning of a bull market.
Many market participants have repeatedly stated that the current condition is a bull cycle, a point Dan agrees with.
However, he also pointed out that the state of Bitcoin’s active addresses suggests that the price has not yet reached its highest value.
The current state of the metric is closer to the bottom than the top, indicating that Bitcoin’s price could climb much higher than $69,000.
As of now, Bitcoin seems to be inching its way up to $68,000, trading a little below $67,000.
The 50 Exponential Moving Average (EMA) has crossed over the 200 EMA, indicating a bullish trend for Bitcoin. As long as Bitcoin does not drop below $52,200, the price has the potential to reach the $80,000 region.
The On Balance Volume (OBV) reading has also increased, indicating positive volume pressure. This suggests that Bitcoin’s price might not wait long before surpassing the high it hit a few days ago.
The Awesome Oscillator (AO) is showing a green daily histogram bar, indicating increasing upward momentum. In the short term, Bitcoin might rally toward $72,000 to $75,000.
If the number of active Bitcoin users rises as it did in the 2021 bull market, the price might climb even higher. However, if it doesn’t, Bitcoin might still increase in value but may not hit an astronomical valuation.
