Bitcoin On-Chain Metrics Surge, Price Rally Incoming?
• Bitcoin bulls are getting excited as various on-chain metrics trend higher, suggesting a potential price rally in the near future.
• Key on-chain indicators such as active addresses, transactions and new addresses have all been increasing steadily since the end of last year.
• The rise in these metrics is seen as a positive sign for Bitcoin’s long-term adoption and demand.
On-Chain Metrics Trending Bullishly For Bitcoin
Bitcoin bulls are getting increasingly optimistic as various on-chain metrics suggest that further price rallies could be incoming. Data presented by crypto analytics firm Glassnode shows that the 14-day Exponential Moving Average (EMA) of the number of active addresses interacting with the network has consistently risen since the end of December 2020, reaching around 975,000 this week. This suggests an acceleration in BTC demand.
Transaction and New Address Activity Also Rising
The 14-day EMA of transaction activity recently came close to its highest levels since early 2021 when it nearly hit 305,000 this week – an approximate 50,000 increase since December 2020. Meanwhile, the 14-day EMA of new Bitcoin addresses being created recently rose close to its highest since mid 2021 at 459,000 – up around 40,000 from December 2020 figures. These increases suggest an acceleration in Bitcoin’s adoption which is viewed positively for long term demand and price stability.
Number of Addresses With Non-Zero Balance Continuously Increasing
The number of Bitcoin addresses holding a non-zero balance was last at 44.193 million on Thursday – close to the all time high set last month above 44.2 million. This suggests continued ‘adoption’ which is generally seen as a positive sign in terms of long term demand and stability for BTC prices.
Bullish Technical Metrics Accompany On Chain Trends
In addition to bullish on chain indicators, there are also several technical factors pointing towards further upside potential for BTC prices over coming months – including higher daily trading volume and a continuous upwards trend in terms of market capitalization value compared with other cryptocurrencies such as Ethereum and Ripple XRP .
Conclusion: Further Price Rally Incoming?
Overall, these trends suggest that further rallies could be incoming for BTC prices should macro headwinds from US Federal Reserve monetary policy tightening not prove too severe. As such it looks like bulls may be having their day soon enough – assuming positive trends continue over coming weeks and months ahead!