In a recent analysis of the Bitcoin (BTC) on-chain network, the number of active addresses, which indicates significant activity, investor participation, and market trends, was examined. This was done by applying the monthly moving average (30DMA) and the annual moving average (365DMA) to the metric.
Historically, when the 30DMA crosses below the 365DMA, a phenomenon known as the "death cross", it signals that the market has passed its peak and is entering a bearish phase. In the current cycle, the death cross has persisted since Bitcoin's all-time high (ATH).
Although the decline is not steep enough to definitively declare a bear market, it is crucial to be wary of a potential deepening correction. If the 30DMA drops further, it would be wise to prepare for a macro bearish reversal. Despite these cautionary signals, the overall outlook for the blockchain market remains optimistic.