19 October 2024
The Bitcoin price and the bull run appear to be back on the right track after recording its best weekly performance in the past month. Despite starting the week quietly and hovering around the $63,000 level, the premier cryptocurrency received fresh bullish momentum mid-week, pushing its value to almost $69,000 on Friday.
The latest on-chain observation has revealed that the activity level of the Bitcoin network has been on the rise over the past few weeks. While this development might have contributed to the recent price surge, the question is — how far can it push the value of the flagship cryptocurrency?
Golden Cross Could Push Bitcoin Price Past $73,737
In a recent Quicktake post on the CrypoQuant platform, an analyst with the pseudonym Yonsei_dent revealed that Bitcoin price might be forming an upward structure. This bullish prognosis is based on the growth rate of active addresses, which represents the number of unique addresses showing significant activity on the Bitcoin network.
An increase in the number of these active addresses offers insight into the network activity, investor behavior or sentiment, and general market trends. Hence, observing the growth momentum of these unique addresses using moving averages (MAs) of various timelines can be quite useful in assessing current price trends.
In their latest analysis, the CryptoQuant analyst utilized a 30-day moving average (30DMA) and a 365-day moving average (365DMA) to capture the growth momentum of the Bitcoin active addresses. As shown in the chart below, the 30-day moving average has witnessed a sharp spike over the past month and appears to be approaching the 365DMA.
According to Yonsei_dent, the Bitcoin price could experience a positive shift in bullish momentum if the 30DMA eventually reaches the 365DMA and crosses it to the upside (making a golden cross.) In crypto terms, a golden cross refers to a bullish chart that is characterized by a relatively short-term moving average crossing above a long-term moving average.
Typically, a golden cross indicates the potential of a long-term bull market starting or resuming. Ultimately, this indicates that the price of Bitcoin could be readying for a charge towards its all-time high of $73,737.
‘Bitcoin Is Establishing An Upward Structure’ — Here’s How
As of this writing, the Bitcoin price is about 7% adrift of its record-high level. According to data from CoinGecko, the premier cryptocurrency is valued at $68,540, reflecting an over 2% increase in the past day.
According to Yonsei_dent, the price of Bitcoin has been forming progressively increasing highs and lows since July, suggesting an “upward market structure.”
However, It is worth noting that these highs and lows appear to be printing a “rising wedge” pattern, which could be bearish for the Bitcoin price.