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Bitcoin News: The current Bitcoin (BTC) rally could perhaps have been a result of relief from the macroeconomic scenario and resistance to the shock events in crypto market in 2022. However, a steady growth since the beginning of January 2023 raised hopes of a prolonged rally, marking an end to the painful crypto winter of 2022. Despite the bullish atmosphere, the top cryptocurrency is currently below the key indicator of 200 day weekly moving average (WMA). An important observation from on chain data could answer the reason behind this behavior in BTC.
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The 200 WMA is key for traders as the indicator is generally a sign of change in direction for the asset. When there is a clear signal from this indicator, it is believed that there will be a long term change. This behavior of BTC trading below the 200 WMA was observed quite often throughout 2022.
Bitcoin Active Addresses
In what could be a sign of lack of strength for next Bitcoin bull pattern, on chain data reveals an interesting comparison from previous BTC breakouts. Unlike the beginning of previous bull cycles, the current cycle does not actually have enough active addresses based on 30 day moving average, or a rise in them, to justify a price movement in upward curve. As per Crypto Quant data, there is no real growth in the number of active Bitcoin addresses.
Currently, the BTC price is fluctuating around the $25,000 milestone but still fails to rise above the 200WMA. As of writing, BTC price stands at $24,783, down 1.09% in the last 24 hours, according to CoinGape price tracker.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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