Bitcoin New Address Momentum
To analyze how Network Adoption / Network Effects are doing,
we look at the number of new addresses on the chain.
Because, new addresses drive new transactions, which drives network valuation, which will drive price.
But what are network effects?
I created a cheatsheat for you to understand this,
In the data, we see a number of different things. The most important ones are the red curve which shows the monthly moving average of new addresses, the blue line which is the yearly moving average.
If the monthly breaks over the yearly, you have bullish momentum. The other way around is bearish, the perfect example is that you see this happening exactly before we had the selloff in May 2021.
Since then we have not/barely gotten back above this. We need to get over this to get the indication that we have network momentum back. We are'nt there yet, but are getting closer step by step.
OnChain Crypto CryptocurrenciesThis post is based on this twitter thread.