Bitcoin Network Activity Indicates Potential Bull Run
An analyst named Ali recently discussed the possibility of a bull run for Bitcoin based on network activity. A bull run is typically characterized by increased on-chain activity. To measure this, Ali used the “new addresses” metric, which tracks the number of new addresses joining the Bitcoin blockchain each day.
A high value in this metric indicates a significant number of users joining the network, suggesting high adoption. Conversely, low values imply a lack of interest in the market and fewer newcomers attracted to the blockchain.
Chart Showing Bitcoin New Addresses Trend
Here is a chart displaying the trend in Bitcoin new addresses, along with the 30-day and 365-day simple moving averages (SMAs) of the indicator over recent years.
It’s important to note that certain applications using the blockchain, like non-fungible tokens (NFTs), can skew address-related metrics. New addresses may be created solely for these purposes rather than for trading the coin itself.
The Glassnode lead explains that volume metrics carry slightly more weight because Ordinals-related transactions don’t involve significant volume.
Exchange Volume Does Not Indicate Bullish Pattern
Unlike the new addresses metric, exchange volume (inflows and outflows) does not show a bullish pattern at this time. This suggests that network activity may not be indicative of a bull run stage currently.
BTC Price
As of now, Bitcoin is trading at approximately $27,000, showing a 3% increase over the past week.
Hot Take: Is a Bull Run on the Horizon for Bitcoin?
Based on the recent analysis of Bitcoin network activity, there are signs that a potential bull run could be approaching. The new addresses metric, which tracks user adoption, suggests increased interest and participation in the cryptocurrency. However, exchange volume does not align with this bullish pattern.
While Bitcoin’s price has shown a slight increase over the past week, it remains to be seen if this will lead to a full-fledged bull run. Keep an eye on network activity and market trends for further insights into the future of Bitcoin.
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