According to data from CryptoQuant, “Active Addresses” refers to the number of unique addresses on the Bitcoin (BTC) network that show significant activity. This metric allows us to understand the level of activity on the BTC network, investor participation, and market trends.
By applying the monthly moving average (30DMA) and the yearly moving average (365DMA) to this indicator, we can observe the momentum of the market. History shows that when the 30DMA crosses below the 365DMA (death cross), the market has passed the cycle top and entered a decline phase.
In the current cycle, the death cross has extended since its all-time high (ATH). Although the decline is not yet sharp enough to confirm a clear bear market, the possibility of a deeper correction should be cautious. If the 30DMA continues to decline, it would be reasonable to prepare for a large-scale bearish reversal.
The current chart shows that the number of active addresses (30DMA) is trending down, reflecting a decrease in short-term activity. The 365DMA is also falling, indicating a decrease in long-term activity. This could be due to a number of factors such as a market correction, decreased interest from investors, or a shift to other types of investments.
The long-term trend of growth in Bitcoin active addresses has been clear from 2016 to present, especially during periods of strong bull markets (like in 2017 and 2020-2021). However, there are significant declines during market downturns, such as after the 2017 peak and after the 2021 peak.
Charts from CryptoQuant provide an important perspective on Bitcoin address activity and market trends. With the prolongation of the death cross and the decline in address activity, investors should prepare for the possibility of a deeper correction and closely monitor these indicators to make smart investment decisions.
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Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any investment decisions. We are not responsible for your investment decisions.
Thach Sanh
According to Bitcoin Magazine
