In a recent announcement by cryptocurrency analysis firm CryptoQuant, a significant event known as a “golden crossover” is predicted to take place in a crucial Bitcoin metric. The firm’s report highlights an imminent crossover in the Active Addresses Momentum indicator, a key measure of network activity and market trends. This indicator tracks unique Bitcoin addresses actively participating in the network, offering insights into investor participation and overall market sentiment. By applying a 30-day moving average and a 365-day moving average, CryptoQuant measures changes in network activity over different time frames.
A golden cross is anticipated to occur when the shorter 30-day moving average (30DMA) surpasses the longer 365-day moving average (365DMA), traditionally indicating a bullish reversal and upward price momentum. This crossover is viewed as a signal of increased market activity and investor optimism. Following a previous “dead cross” where the 30DMA fell below the 365DMA after reaching a new all-time high, the current trend reversal is noteworthy. According to CryptoQuant, the formation of this golden cross suggests a potential bullish period for Bitcoin. The analysis also highlights a nearly doubled transaction numbers compared to the 2021 cycle, signaling promising on-chain activity.
While the firm acknowledges the potential for a bullish period, it warns that the sustainability of the trend will depend on the strength of the crossover. If the 30DMA does not decisively rise above the 365DMA, the market could resemble the mixed price action seen in the mid-2021 phase despite the initial golden cross. As a disclaimer, this information is not investment advice.
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