Analyst Highlights Significant Bitcoin Metric Pointing Towards a Substantial Uptrend—Possibility of $90K in the Near Future?
Bitcoin (BTC) has been attracting the attention of investors as it continues to experience positive price movements. The latest CryptoQuant analysis indicates that a crucial metric called “active address momentum” suggests a bullish outlook for the cryptocurrency.
Active addresses are unique addresses that engage in transactions on the Bitcoin network. By utilizing a 30-day moving average (30DMA) and a 365-day moving average (365DMA), the CryptoQuant analyst has identified the network’s increasing momentum.
The analyst emphasized that the 30DMA has demonstrated a significant rise recently and is approaching the 365DMA. If a “golden cross” occurs, where the 30DMA surpasses the 365DMA, it could further indicate a bullish trend for Bitcoin.
Additionally, the analyst highlights the high transaction volumes Bitcoin has witnessed in the latter half of this year, further supporting the notion of increased network activity.
While the recent upward momentum is encouraging, the analyst also cautions against potential volatility due to the formation of a “rising wedge” pattern in Bitcoin’s price chart. Should this pattern continue to tighten, it could lead to substantial price swings.
The recent price performance of Bitcoin has bolstered investor optimism. Within the last week, the cryptocurrency surged by over 10% and has continued its upward trajectory, rising an additional 1.98% in the past 24 hours to reach $68,708 at the time of writing.
This price movement has enabled Bitcoin to break through a significant resistance zone on its daily chart, prompting predictions of even higher prices.
Notably, cryptocurrency analyst Javon Marks shared his outlook on Bitcoin, highlighting that it has broken out of a “descending broadening wedge” pattern. This pattern indicates that when the resistance line is breached, the price objective is achieved in 81% of cases.
Marks believes that this breakout could potentially propel the price of Bitcoin to a range between $90,000 and even surpassing $96,000.
It is important to note that these predictions are based on technical analysis and market trends, and that cryptocurrency markets are inherently volatile and unpredictable.
(image source: TradingView)