NewsletterNew Bitcoin Addresses And Golden Cross Hints BTC Price Recovery
The Bitcoin (BTC) price has entered a strong consolidation and trading around the $29,000 level for a while leaving investors confused amid the subdued price volatility.
However, the on-chain data for Bitcoin shows an overall improvement in network activity. While the BTC price recently corrected from $32,000 to $29,000, the total number of new Bitcoin addresses has continued to rise. “This bullish divergence between price and network growth hints at a stable long-term BTC uptrend. Buy the dip!” writes popular crypto analyst Ali Martinez.
Other on-chain indicators also signal a bullish momentum for Bitcoin. Martinez explains: “All major $BTC oscillators (MVRV, aSOPR, Puell Multiple, and Reserve Risk) continue to hover above the 0 line. This indicates the ongoing price correction might just be a blip”.
Bitcoin Golden Cross, BTC Price Recovery Begins
In a post on TradingView last week August 4, crypto trading analyst TradingShot noted that Bitcoin has just crossed the golden-cross indicator for the third time in history. Thus, it could be the beginning of a new bull rally to another record-high level.
The golden cross pattern happens when a short-term moving average rises above a long-term moving average i.e. 50 DMA crossing the 200 DMA. This basically suggests a positive trend for the cryptocurrency. During the previous two golden-cross instances, the BTC price rallied significantly thereafter.
Citing previous Golden cross cycles, TradingShot noted that the next upward target for Bitcoin would be its current ATH i.e. $69,000. “It could be a fair estimate that Bitcoin would have reached the current ATH ($69,000) by around this time next year,” he said.
It’s important to mention that the unique circumstances of the March 2020 COVID-19 crash, which was like a Black Swan event, temporarily disrupted the usual pattern. Experts predict that the upcoming Bitcoin halving in 2024 might start a new market cycle. However, in the short term, there are concerns that Bitcoin’s price could drop below $29,000.
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