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Recently, the bitcoin price has increased faster than the number of active addresses. This is a sign of short-term market overheating and a possible correction, according to the
Recently, the bitcoin price has increased faster than the number of active addresses. This is a sign of short-term market overheating and a possible correction, according to the on-chain Active Address Sensitivity Indicator (AASI).
The graph below shows the yellow line crossing the upper limit of the range of variation in the number of active addresses (red dotted line).
This is a sign of short-term overheating of the market, according to the indicator’s description.
“In extreme market conditions, the 28-day price change (orange line) is aggressively moving beyond the red and green dotted lines. This usually happens during a market crash or in the final stages of a bull cycle,” says the LookIntoBitcoin website.
Unlike AASI, the long-term MVRV Z-Score crossed the upper bound of the deep oversold zone at 0.1. This is a signal about the possible transition of the “bottom” of the market cycle.
An improvement in investor sentiment is also indicated by the Net Unrealized Profit/Loss metric (NUPL). The indicator moved to the field of “hope/fear” and turned towards “optimism”.
At the time of writing, Bitcoin is trading around $22,770. According to CoinGecko, the rate of the cryptocurrency has decreased by 2.4% in the last 24 hours.
Glassnode analysts previously concluded that it will take some time for the Bitcoin price to reverse.
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Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
