Bitcoin approaches $60K with network adoption increase predicting strong bull run
- Network user activity has increased by 19% to 284,179
- Median size of on-chain transactions has grown from 0.6 BTC to 1.3 BTC since last month
- First bull cross in 16 months expected by the end of this week
Bitcoin (BTC/USD) continues to rally as blockchain activity picks up; signs are the long-term technical indicator is about to turn bullish. The premiere crypto’s value rose by 30% this month alone, while network user activity has increased 19% to 284,179, according to data provided by Glassnode.
This is measured by the seven-day average of the number of active entities or, as defined by Glassnode, a “cluster of addresses controlled by the same network entity.”
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Analysts believe a price and network adoption increase will confirm the Bitcoin uptrend. Glassnode announced:
More active market participants have historically correlated with growing interest in the asset during early-stage bull markets.
The metric includes individuals, custodians, and businesses like exchanges. The number of active entities is at a five month peak. It is comparable to that observed at the end of last year, when Bitcoin’s bull run started.
Network adoption has risen in parallel to institutional participation. This is proven by the growth in the median size of on-chain transactions since last month – from 0.6 BTC to 1.3 BTC. Glassnode added:
An increased typical transaction size is not synonymous with price appreciation, but indicative of larger and even institutional sized capital flows present on-chain.
The technical outlook seems to be in sync with on-chain data signifying a bull run. The moving average over 100 and 200 days predicts a bull cross by the end of the week. It will be the first in 16 months.
What is a bull cross?
When a certain moving average surpasses another average, which tracks a bigger volume of historical data, we speak of a ‘bull cross.’ The anticipated bull cross is largely considered indicative of a long-term bull market, which could bring about stronger chart-driven buying pressure soon. After the bullish signal in the summer of 2020, we witnessed an impressive bull run – from $8,300 to $64,801 – in just 10 months.
Don’t over-rely on moving average crosses
Be they bullish or bearish, these crossovers are not always reliable. These indicators are not current and can mislead traders because of that.