On-chain data shows that Bitcoin active addresses have recently seen a reversal, which could be positive for the cryptocurrency’s price.
Bitcoin daily active addresses have recently spiked
According to data from the market intelligence platform In the blockBitcoin has recently seen an increase in its daily active addresses. A “active address” participates in a transaction activity on the blockchain.
The Daily Active Addresses metric records the total unique number of addresses of this type that become active daily. The metric naturally takes into account both senders and recipients.
When the value of this metric increases, more addresses are making movements on the network. Since unique addresses can be considered the same as unique users on the chain, this trend implies that the cryptocurrency is receiving more traffic.
On the other hand, the declining indicator suggests that the blockchain is becoming less active, a potential sign that investors are losing interest in the asset.
Now here is a chart that shows the trend of Bitcoin daily active addresses over the past few months:
Looks like the value of the metric has been going up in recent days | Source: IntoTheBlock on X
As the chart above shows, Bitcoin’s daily active addresses have seen a notable jump recently, with their value surpassing the 900,000 mark at its peak.
This means that more than 900,000 addresses made transactions in 24 hours. “This spike is part of a broader trend, with activity slowly increasing since early June,” the analyst firm notes.
Prior to this recent upward trend, the indicator had decreases Users began to pay less attention to the currency. With this increase, however, daily active addresses returned to mid-April levels.
Historically, rallies have been more sustainable when consistent fuel in the form of more users has been pouring in. As such, an increase in daily active addresses can pave the way for price spikes for Bitcoin.
It remains to be seen, then, whether this latest spike in activity could also serve as a basis for the cryptocurrency to launch a new bullish momentum.
In other news reports, bullish bets appear to be increasing in the Bitcoin derivatives market, as CryptoQuant community manager Maartunn pointed out in an X article job.
The data for the BTC funding rates over the last few months | Source: JA_Maartun on X
As the chart shows, Bitcoin financing rate has recently seen a positive surge, suggesting that long contract holders are significantly outweighing short contract holders. Historically, such dominance of bullish sentiment has not been a positive sign for the cryptocurrency’s price.
BTC Price
At the time of writing, Bitcoin is hovering around $61,900, down more than 2% in the past 24 hours.
The price of the coin seems to have been consolidating recently | Source: BTCUSD on TradingView
Featured image by Dall-E, IntoTheBlock.com, charts by TradingView.com
