On-chain data shows that Bitcoin’s active addresses have recently undergone a reversal, which could be positive for the cryptocurrency’s price.
Bitcoin Daily Active Addresses Have Been Climbing Lately
According to data from the market information platform IntoTheBlockBitcoin has recently seen a surge in its Daily Active Addresses. A “active address“participates in a transaction activity on the blockchain.
The Daily Active Addresses metric tracks the unique total number of such addresses that become active on a daily basis. The indicator naturally takes into account both senders and receivers.
When the value of this metric goes up, 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 downtrend indicator indicates that the blockchain is becoming less active, which is a possible sign that investors are losing interest in the asset.
Below is a chart showing the trend in daily active Bitcoin 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 you can see in the chart above, the number of Bitcoin Daily Active Addresses has recently made a remarkable jump. At its peak, the value crossed the 900,000 mark.
This means that more than 900,000 addresses have transacted within 24 hours. “This spike is part of a larger trend, as activity has been slowly increasing since early June,” the analyst firm notes.
Before this recent uptrend, the indicator had turned down as users paid less attention to the coin. However, with this increase, Daily Active Addresses have recovered to mid-April levels.
Historically, rallies have been more sustainable when there is consistent fuel flowing in the form of more users. As such, an increase in Daily Active Addresses could pave the way for Bitcoin price increases.
So it remains to be seen whether this latest spike in activity will also form the basis for new bullish momentum for the cryptocurrency.
In other news articles, bullish bets on the Bitcoin derivatives market appear to be increasing, as CryptoQuant community manager Maartunn noted in an X after.
The data for the BTC funding rates over the last few months | Source: JA_Maartun on X
As shown in the chart, Bitcoin is financing percentage has recently seen a positive spike, suggesting that long contract holders are significantly outnumbering 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’s price 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
Main image from Dall-E, IntoTheBlock.com, charts from TradingView.com