Bitcoin Bulls Get Ready: Key On-Chain Metrics Trending Higher

• Bitcoin is up 40% this year and the rally could extend if positive on-chain trends continue.
• On-chain metrics such as active addresses, transactions, new addresses, and non-zero balance addresses are trending positively.
• An increase in adoption is a sign of continued demand for BTC in the long term.

Rising Demand for Bitcoin

Bitcoin has seen a strong surge in price so far this year, with its market capitalization rising more than 40%. This rally could be extended further if bullish on-chain trends continue to build momentum. A variety of widely followed metrics of on-chain activity have been trending higher recently, suggesting increasing demand for the world’s first cryptocurrency.

Active Addresses

The 14-day Exponential Moving Average (EMA) of the number of active addresses interacting with the Bitcoin network was at around 975,000 on Wednesday. If this metric can continue to rise and push above 982,000, active addresses would be at their highest since last May – indicating an increase in demand for BTC.

Transactions

The 14-day EMA of the number of transactions taking place on the network recently came close to its highest levels since early 2021 when it nearly hit 305,000 on Wednesday – that’s an approximate 50,000 rise since the end of 2022. Rising transaction numbers can also be used a rough proxy for a rise in BTC demand.

New Addresses

The 14-day EMA of new Bitcoin addresses being created recently rose close to its highest since mid-2021, clocking in at 459,000. That’s up around 40,000 since the end of December which suggests an acceleration in Bitcoin’s „adoption“. This is another sign that demand remains high and increasing over time.

Non Zero Balance Addresses

The number of Bitcoin addresses holding a non-zero balance was last recorded at 44.193 million Thursday – close to its all time high set last month above 44.. This metric has historically risen during both bull and bear markets but still indicates increased adoption over time which is generally viewed as a positive sign for future price appreciation potentials over time.