In recent weeks, Bitcoin (BTC) has experienced a notable upward trend, exhibiting positive price movements that are attracting the attention of investors.
A recent analysis from CryptoQuant reveals that a significant metric known as “active address momentum” indicates a strong bullish sentiment for the cryptocurrency.
Active Address Momentum Suggests Growing Market Structure
Active addresses refer to the count of unique addresses engaged in transactions on the Bitcoin network, offering insights into the network’s activity and investor participation.
By utilizing both a 30-day moving average (30DMA) and a 365-day moving average (365DMA) for this indicator, the CryptoQuant analyst can track the increasing momentum within the network.
The analyst pointed out that the recent rise in the 30DMA is significant, as it approaches the 365DMA. A potential “golden cross,” where the 30DMA exceeds the 365DMA, could indicate a continuation of Bitcoin’s bullish trend, as highlighted by the analyst.
Additionally, the CryptoQuant analyst noted that since the latter half of the year, Bitcoin has been experiencing high transaction volumes, further supporting rising network activity.
While the current bullish momentum is a positive sign, the analyst cautioned that potential volatility could arise from a “rising wedge” pattern in Bitcoin’s price chart—a scenario that could trigger notable price fluctuations if the wedge continues to narrow.
Is a Bitcoin Rally to $90,000 Imminent?
Bitcoin’s recent price movements have fueled optimism among investors. Over the last week, the cryptocurrency has gained more than 10%, and it continues its upward trend, having risen an additional 1.98% in the last 24 hours to reach $68,708 at the time of this writing.
This upward trend has enabled Bitcoin to surpass a critical resistance level on its daily chart, leading to predictions of even higher price targets.
One significant prediction came from crypto analyst Javon Marks, who recently shared his insights on X. Marks pointed out that Bitcoin has broken free from a “descending broadening wedge” pattern, which statistically suggests that breaking the resistance line results in achieving the price objective in 81% of the cases.
In Marks’ view, this breakout might propel Bitcoin’s price to a range between $90,000 and possibly above $96,000.
#Bitcoin (BTC) has now broken out from the indicated ‘descending broadening wedge’ pattern, and statistics for this kind of pattern reveal that in 81% of cases, the price objective is achieved after the resistance line is breached.
Bitcoin’s Price Objective:
$90,000-$96,000+ https://t.co/lPZZtJm7pi pic.twitter.com/hudApLSlDj
— JAVON
MARKS (@JavonTM1) October 17, 2024
Featured image created with DALL-E, Chart from TradingView
