bitcoin (btc) has been on an upward trend in recent weeks, showing positive price movements that look quite attractive to investors.
According to a recent bitcoin-Establishing-an-Upward-Structure-A-Look-at-Active-Address-Momentum”>CryptoQuantum The analysis, a key metric, “active direction momentum,” paints a bullish picture for the cryptocurrency.
Active direction momentum indicates ascending market structure
Active addresses represent the number of unique addresses transacting on the bitcoin network, providing information about network activity and investor participation.
By applying a 30-day moving average (30DMA) and a 365-day moving average (365DMA) to this indicator, the CryptoQuant analyst was able to assess the network's growing momentum.
<img src="https://technicalterrence.com/wp-content/uploads/2024/10/Analyst-Points-to-Key-Bitcoin-Metric-Indicating-Strong-Uptrend-90000.png" alt="Active bitcoin addresses.” />
The analyst emphasized that the 30DMA has risen sharply recently and is approaching the 365DMA. If a “golden cross” occurs, where the 30DMA surpasses the 365DMA, it could indicate a new bullish trend for bitcoin, Dent reveals.
The CryptoQuant analyst added that bitcoin has seen high transaction volumes since the second half of the year, supporting increased network activity.
While the current bullish momentum is encouraging, the analyst also warned of potential volatility due to the formation of a “rising wedge” on the bitcoin price chart, a pattern that could lead to major price swings if the wedge continues to tighten.
Is bitcoin's rebound to $90,000 in sight?
bitcoin's recent price performance has added to optimism among investors. Over the past week, the cryptocurrency has surged over 10% and continued its upward trajectory, rising an additional 1.98% in the last 24 hours to trade at $68,708 at the time of writing.
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This upward move has helped bitcoin break through a major resistance zone on its daily chart, leading to even higher price predictions.
One notable prediction came from crypto analyst Javon Marks, who recently shared his perspective on x. Marks highlighted that bitcoin has broken a “falling and widening wedge” pattern. Statistically, this pattern suggests that when the resistance line is broken, the price target is reached in 81% of the cases.
In the case of bitcoin, Marks believes that this breakout could push the price of bitcoin to a range between $90,000 and even over $96,000.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#bitcoin (btc) is now breaking out of the displayed “falling and widening wedge” pattern and the statistics of this type of pattern indicate that in 81% of the cases, the price target of the pattern is reached when the resistance line is broken.
bitcoin Price Target:
$90,000-$96,000+ https://t.co/lPZZtJm7pi pic.twitter.com/hudApLSlDj
— JAVONBRANDS (@JavonTM1) twitter.com/JavonTM1/status/1846910981005349211?ref_src=twsrc%5Etfw” target=”_blank”>October 17, 2024
Featured image created with DALL-E, TradingView chart
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