Analyst Points To Key Bitcoin Metric Indicating A Strong Uptrend$90K in Sight?
Bitcoin (BTC) has been on an upward trend in recent weeks, showing positive price movements that appear quite appealing to investors.
According to a recent CryptoQuant analysis, a key metric, active address momentum, paints a bullish picture for the cryptocurrency.
Active Address Momentum Signals Upward Market Structure
Active addresses represent the number of unique addresses conducting transactions on the Bitcoin network, providing insights into network activity and investor engagement.
By applying a 30-day moving average (30DMA) and a 365-day moving average (365DMA) to this indicator, the CryptoQuant analyst could assess the networks growing momentum.
The analyst emphasized that the 30DMA has sharply risen recently and is closing in on the 365DMA. If a golden cross occurs, where the 30DMA surpasses the 365DMA, it could signal a further bullish trend for Bitcoin, dent reveals.
The CryptoQuant analyst added that Bitcoin has seen high transaction volumes since the second half of the year, supporting increased network activity.
While the current upward momentum is encouraging, the analyst also warned of potential volatility due to a rising wedge formation in Bitcoins price charta pattern that could lead to significant price swings if the wedge continues to tighten.
Bitcoin Rally To $90,000 In Sight?
Bitcoins recent price performance has added to the optimism among investors. Over the past week, the cryptocurrency has surged by over 10%, and it has continued its upward trajectory, rising by an additional 1.98% in the past 24 hours to trade at $68,708 at the time of writing.
This upward movement has helped Bitcoin break through a major resistance zone on its daily chart, sparking predictions of even higher prices.
One notable prediction came from crypto analyst Javon Marks, who recently shared his outlook on X. Marks highlighted that Bitcoin has broken out of a descending broadening wedge pattern. Statistically, this pattern suggests that when the resisting line is broken, the price objective is reached in 81% of cases.
In Bitcoins case, Marks believes that this breakout could push the price of Bitcoin to a range between $90,000 and even more than $96,000.
#Bitcoin (BTC) is now broken out of the displayed descending broadening wedge pattern and statistics from this type of pattern states that in 81% of cases, the patterns price objective is reached when the resisting line is broken.
Bitcoins Price Objective:
$90,000-$96,000+ https://t.co/lPZZtJm7pi pic.twitter.com/hudApLSlDj
JAVONMARKS (@JavonTM1) October 17, 2024
Featured image created with DALL-E, Chart from TradingView
Text source: NewsBTC
