Important Bitcoin Metric Hits 6-Month High as BTC Price Prepares for Rebound

TL;DR

• Months after it was declared a ghost town, the Bitcoin network has picked up pace again, with the number of active addresses skyrocketing to over 900,000.
• At the same time, a popular technical indicator has flashed a buy signal, suggesting that BTC’s price could be primed for another run in the short term.

Network activity is an important metric that helps determine whether or not the underlying blockchain is being used and to what extent. Although it’s not directly linked to the asset’s price movements, it shows the overall interest in it, and sometimes coincides with said moves.

For instance, the active addresses skyrocketed after the US elections, and BTC’s price followed suit. Contrastingly, the activity levels plunged after Trump’s inauguration, as the Bitcoin network was declared a “ghost town,” and the asset’s price followed suit in the following months, dropping from over $100,000 to under $80,000.

Now, though, Ali Martinez, the popular analyst on X, outlined a substantial uptick in the number of daily active addresses. His chart shows that the usage has shot up to over 925,000 such wallets, which is the highest amount in six months.

https://twitter.com/ali_charts/status/1918701082102133036?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank

Recall that BTC’s price has already regained over $20,000 since its April 7 and 9 lows of under $75,000. However, it faced rejection at $98,000 yesterday and has fallen by around two grand.

Nevertheless, Martinez brought up another chart, which suggests more price increases are to come for the largest digital asset. The TD Sequential, a metric used to showcase the market’s exhaustion in either direction, has flashed a buy signal on the hourly chart, which is usually a good entry point.

https://twitter.com/ali_charts/status/1918643956063011317?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank