A recent report from cryptocurrency analysis firm CryptoQuant suggests that the Bitcoin network is poised for a significant bullish signal. The firm’s analysts have identified an impending golden cross in the metric of active addresses.
Active addresses represent the unique addresses actively participating in Bitcoin transactions. This metric provides valuable insights into network activity, investor engagement, and broader market trends. By applying a 30-day moving average (DMA) and a 365-day DMA to this indicator, analysts can gauge momentum.
Historically, a golden cross, where the 30-day DMA crosses above the 365-day DMA, has been associated with upward price momentum. This bullish signal is particularly significant after the Bitcoin network experienced a dead cross post-all-time-high (ATH), indicating a potential reversal of the bearish trend.
The current alignment of the 30-day and 365-day DMAs suggests an imminent golden cross. Notably, the number of Bitcoin transactions is nearly double compared to the 2021 cycle, signaling increased market activity. However, the strength of the golden cross will determine the subsequent price trend. If the 30-day DMA fails to decisively surpass the 365-day DMA, the market may exhibit a similar pattern to the mid-2021 phase.
