Bitcoin (BTC) has been on an upward trend in recent weeks, showing positive price movements that seem quite attractive to investors.
According to a recent CryptoQuant Analysis, a key metric, ‘active address momentum’ paints a bullish picture for the cryptocurrency.
Active address momentum signals upward market structure
Active addresses represent the number of unique addresses transacting on the Bitcoin network, providing insight into network activity and investor engagement.
By applying a 30-day moving average (30DMA) and a 365-day moving average (365DMA) to this indicator, the CryptoQuant analyst was able to assess the network’s growing momentum.
The analyst highlighted that the 30DMA has risen sharply recently and is getting closer to the 365DMA. If a ‘golden cross’ forms, with the 30DMA surpassing the 365DMA, it could signal a further bullish trend for Bitcoin, Dent reveals.
The CryptoQuant analyst added that Bitcoin has seen high transaction volumes since the second half of the year, supporting increased network activity.
While the current upward momentum is encouraging, the analyst also warned of potential volatility due to a “rising wedge” formation in Bitcoin’s price chart – a pattern that could lead to significant price swings if the wedge continues to tighten.
Bitcoin rally to $90,000 in sight?
The recent price development of Bitcoin has increased optimism among investors. Over the past week, the cryptocurrency has risen more than 10% and has continued its upward trajectory, gaining another 1.98% over the past 24 hours to trade at $68,708 at the time of writing.
This upward move has helped Bitcoin break a key resistance zone on the daily chart, leading to predictions of even higher prices.
One notable prediction came from crypto analyst Javon Marks, who recently shared his take on X. Marks emphasized that Bitcoin has broken the “falling widening wedge” pattern. Statistically, this pattern suggests that when the resistance line is broken, the price target is achieved 81% of the time.
In the case of Bitcoin, Marks believes this breakout could push Bitcoin’s price to a range between $90,000 and even over $96,000.
#Bitcoin (BTC) has now broken out of the depicted ‘descending broadening wedge’ pattern and statistics of this type of pattern indicate that in 81% of cases the price target of the pattern is reached when the resistance line is broken.
Bitcoin’s Price Target:
$90,000-$96,000+ https://t.co/lPZZtJm7pi pic.twitter.com/hudApLSlDj
— JAVON
BRANDS (@JavonTM1) October 17, 2024
Featured image created with DALL-E, Chart from TradingView
Credit : www.newsbtc.com
