Bitcoin’s on-chain activity is gaining momentum as a CryptoQuant analyst known as ‘Yonsei Dent’ recently highlighted a potential golden cross within the active addresses metric. This indicator, which tracks the number of unique addresses engaging with the Bitcoin network, provides crucial insights into the network’s overall activity, investor involvement, and possible market directions.
According to Dent’s analysis, applying a monthly and annual moving average to this active addresses metric could signal a shift toward bullish momentum. A high number of active addresses generally suggests strong participation, while fewer addresses may indicate reduced interest. Dent emphasized that when the 30-day moving average of active addresses crosses above the 365-day moving average—a phenomenon known as a “golden cross”—it often correlates with upward price momentum in the Bitcoin market. This alignment between short-term and long-term trends can suggest renewed interest among both retail and institutional investors, potentially sustaining or even increasing Bitcoin’s value.
Dent pointed out the significance of the golden cross in active addresses in light of previous market cycles. The last notable shift in Bitcoin’s active addresses occurred post all-time high (ATH) levels, leading to a “dead cross,” where the short-term average fell below the long-term average, typically signaling bearish sentiment or market stagnation. However, the current reversion to a golden cross shows a different scenario. Transaction volumes are almost double what they were during Bitcoin’s 2021 price cycle, a favorable sign of increased market engagement and potential upward momentum.
The analyst concluded that a weaker or inconclusive golden cross could lead to a repeat of mid-2021 trends, where price gains faced strong resistance without maintaining upward movement.
In recent weeks, Bitcoin has experienced a noticeable rebound in price, reclaiming levels it once faced resistance in. So far, the asset has recorded double-digit gains in higher time frames, suggesting that positive momentum has begun. In particular, over the past 30 days, BTC has increased by 13% and nearly 10% in the last 7 days. This increase has brought the asset price to trade above $72,000 as of today. This price zone not only reflects a 2.3% decrease from its ATH registered in March 2024 but also marks a vital level that increases the likelihood of surpassing $100,000.
Highlighting this, renowned crypto analyst Javon Marks noted that with Bitcoin holding above $67,559, the rally to $116,652 is in play. Marks emphasized that Bitcoin has recently marked its highest 3-day close ever and is currently holding above a crucial level at $67,559. Being above this level means the target at $116,652 is, according to technicals, in play, implying room for another 61.2% upside from here.