Current Bitcoin ($BTC) Rally Is Historically Different; Here’s How

Anvesh Reddy
February 20, 2023
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Bitcoin News: The current Bitcoin (BTC) rally could perhaps have been a result of relief from the macroeconomic scenario and resistance to the shock events in crypto market in 2022. However, a steady growth since the beginning of January 2023 raised hopes of a prolonged rally, marking an end to the painful crypto winter of 2022. Despite the bullish atmosphere, the top cryptocurrency is currently below the key indicator of 200 day weekly moving average (WMA). An important observation from on chain data could answer the reason behind this behavior in BTC.

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The 200 WMA is key for traders as the indicator is generally a sign of change in direction for the asset. When there is a clear signal from this indicator, it is believed that there will be a long term change. This behavior of BTC trading below the 200 WMA was observed quite often throughout 2022.

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Bitcoin Active Addresses

In what could be a sign of lack of strength for next Bitcoin bull pattern, on chain data reveals an interesting comparison from previous BTC breakouts. Unlike the beginning of previous bull cycles, the current cycle does not actually have enough active addresses based on 30 day moving average, or a rise in them, to justify a price movement in upward curve. As per Crypto Quant data, there is no real growth in the number of active Bitcoin addresses.

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Currently, the BTC price is fluctuating around the $25,000 milestone but still fails to rise above the 200WMA. As of writing, BTC price stands at $24,783, down 1.09% in the last 24 hours, according to CoinGape price tracker.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.