• A golden cross in Bitcoin’s active addresses may signal the start of a bullish market, improving investor confidence.
• Thet rise in active addresses shows increased network activity, which is similar to trends seen before Bitcoin’s 2021 surge.
• Current transaction volumes are nearly double those from 2021, highlighting renewed interest in Bitcoin as it approaches a golden cross.

There may be a shift in the cryptocurrency market as shown by a Golden cross as the Bitcoin Active Addresses Indicator approaches a critical point. Bullish momentum is shown when the 30-day moving average of active addresses exceeds the 365-day moving average.

This crossover has historically indicated an upward trend for the price of Bitcoin. Bitcoin’s active addresses are now approaching this golden cross, indicating a rise in network activity and investor involvement that might have a big effect on the market.

Rising Active Addresses and Market Activity

Market engagement is indicated by the active addresses measure, which shows distinct addresses that are actively transacting on the Bitcoin network. The 30DMA and 365DMA show longer-term patterns in network activity in addition to recording daily transactions. 

The market started a bullish cycle in 2021 when the 30DMA crossed above the 365DMA, leading to the rise price of Bitcoin. As a result, active addresses rose in tandem with network traffic and investor interest.

This trend hanged in 2022 when the price of Bitcoin fell. It creates a “dead cross,” a sign of bearish market sentiment, when the 30DMA falls below the 365DMA. Price fell for most of 2022 and the first half of 2023, together with a decrease in the number of active addresses and transactions that occurred.

Current Trends and Potential Market Impact

In 2023, Bitcoin started to increase in value again. Active addresses increased in together with this recovery, indicating a resurgence of network interest. There may soon be a golden cross as the 30DMA of active addresses gets closer to the 365DMA. Should this crossover take place, it might signal a change in the mood of the market and raise the price of Bitcoin.

Notably, compared to the 2021 bull run, current transaction volumes have almost doubled, indicating increased network activity. The trend might resemble the mid-2021 consolidation phase, with mixed market sentiment, if the 30DMA is unable to decisively overtake the 365DMA.

The post Bitcoin Market Momentum Shifts as Active Addresses Signal Golden Cross appeared first on Crypto News Land.

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