Bitcoin (BTC) has been trending higher over the past few weeks, showing positive price movements that seem quite attractive to investors.
According to a recent CriptoQuant 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 information about 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 could evaluate the growing momentum of the network.
The analyst emphasized that the 30DMA has risen sharply recently and is approaching the 365DMA. If a “golden cross” occurs, where the 30DMA surpasses the 365DMA, this could signal a new uptrend for Bitcoin, reveals Dent.
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 the formation of a “rising wedge” on the Bitcoin price chart – a pattern that could lead to significant price swings if the wedge continues to tighten.
Bitcoin Rally to $90,000 in Spot?
Bitcoin’s recent price performance has added to the optimism among investors. Last week, the cryptocurrency rose more than 10% and continued its upward trajectory, rising another 1.98% in the last 24 hours, trading at US$68,708 at the time of writing.
This upward movement helped Bitcoin break a great resistance zone on your daily chart, generating even higher price predictions.
One notable prediction came from crypto analyst Javon Marks, who recently shared his view on X. Marks highlighted that Bitcoin has broke out of a “descending widening wedge” pattern. Statistically, this pattern suggests that when the resistance line is broken, the price objective is achieved in 81% of cases.
In the case of Bitcoin, Marks believes that this breakout could push the price of Bitcoin to a range between $90,000 and even more than $96,000.
#Bitcoin (BTC) is now outside the displayed “descending widening wedge” pattern and statistics of this type of pattern state that in 81% of cases, the price objective of the pattern is achieved when the resistance line is broken.
Bitcoin Price Target:
$90,000 to $96,000+ https://t.co/lPZZtJm7pi pic.twitter.com/hudApLSlDj
-JAVONBRANDS (@JavonTM1) October 17, 2024
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