The Bitcoin on-chain metrics are showing bullish signs of an impending parabolic breakout for the leading cryptocurrency. One significant turnaround in Bitcoin’s network activity has been noted recently, indicating potential bullish momentum for the digital asset. According to crypto analyst Ali Martinez, the number of daily Bitcoin addresses has broken a downtrend that began on March 5, with 756,480 active addresses in the last 24 hours. This increase in network activity is seen as a positive sign for Bitcoin’s ongoing bull run.
Additionally, the surge in daily active addresses suggests that more users are returning to the Bitcoin ecosystem, which could have a positive impact on the cryptocurrency’s price as trading activity continues to rise. Another bullish signal is the decrease in Bitcoin’s supply on exchanges, indicating that investors are holding onto their holdings for the long term rather than selling. This trend could alleviate selling pressure on Bitcoin and potentially contribute to a price increase.
In the past week, nearly 22,647 BTC ($1.57 billion) were withdrawn from crypto exchanges, contributing to the decline in Bitcoin’s supply on exchanges. Moreover, the Bitcoin Taker Buy Sell Ratio on the HTX exchange has surged to 730, demonstrating a significant increase in buy pressure as investors continue accumulating the cryptocurrency. This accumulation of Bitcoin at a rapid rate could drive the price higher, particularly if selling pressure remains low.
Looking ahead, Martinez has shared insights into Bitcoin’s current and future outlook, highlighting a strong support zone between $69,380 and $67,350 where 1.97 million addresses acquired 964,000 BTC. Bitcoin must maintain levels above this support zone to sustain its bullish momentum. Additionally, Martinez predicts that Bitcoin could reach its next local top around $89,200, with the potential to exceed $100,000 before reaching its market peak.
Overall, the increase in Bitcoin’s network activity, decline in supply on exchanges, and surge in buy pressure indicate a positive outlook for the leading cryptocurrency. With these bullish signals in place, Bitcoin could be on the brink of a significant upward trend, potentially leading to new all-time highs in the near future. Investors and traders alike are closely monitoring these developments as they prepare for potential price movements in the volatile cryptocurrency market.
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