- Active addresses have not yet reached the 2021 peak, indicating bullish potential.
- Bitcoin showed positive volume pressure, indicating higher prices.
Although Bitcoin [BTC] The rise to a new high was good news for the market. Some analysts believe that $69,000 is just a small fraction of how high the price can go. One of those analysts is Crypto Dan, a Korean investor. Dan published his analysis on CryptoQuant with a focus on Bitcoin’s active addresses.
For those unfamiliar, active addresses measure the level of user interaction with a project. If the metric increases, it means there is a high level of transactions within the blockchain.
On the other hand, a decline implies that the daily speculation level is low.
Bitcoin hasn’t started yet
Dan noted in his post that active addresses rise twice per cycle, highlighting that the metric skyrockets at the end of a bear market and the beginning of the bull market. Market participants have repeatedly said for some time that the current situation is a bull cycle.
Source: CryptoQuant
The analyst agreed with this point. However, he said that Bitcoin’s status with regard to active addresses meant that the price had not yet reached its highest value. Defending his point with the table above, he wrote:
“Currently we can assume that we are in the middle of a bull market. Ultimately, the crypto market will reach the end of the bull market as the number of active addresses increases rapidly and reaches the overheating zone (red dotted line). But not yet.”
AMBCrypto noted that the current state of the metric was closer to the bottom than the top. Therefore, one can assume that BTC could rise much higher than $69,000 in the future.
BTC daily analysis
On the daily chart, Bitcoin appears to be making its way to $68,000, while trading just below $67,000. For the long-term outlook, we took into account the Exponential Moving Average (EMA).
At the time of writing, the 50 EMA (blue) had crossed the 200 EMA (yellow), indicating a bullish trend for the coin. As long as BTC does not fall below $52,200, the price has the potential to reach the $80,000 region.
Another indicator that AMBCrypto looked at was the On Balance Volume (OBV). At the time of writing, the OBV value had increased, indicating positive volume pressure. With this position, Bitcoin’s price may not wait long before surpassing the highs set a few days ago.
Additionally, the Awesome Oscillator (AO) showed a green daily histogram bar, indicating increasing upside momentum. In the short term, BTC could rise to $72,000 to $75,000.
Source: TradingView
Read Bitcoin’s [BTC] Price forecast 2024-2025
However, this number may be small compared to the coming months as the number of active addresses increases. Should the number of active Bitcoin users rise as it did during the 2021 bull market, the price could soar higher.
However, if that is not the case, BTC could rise, but it would not be able to reach an astronomical valuation