The cryptocurrency market is currently in an uninteresting state, especially for top cryptocurrency prices. However, there seems to be a ray of hope. Data from the on-chain data platform Santiment shows that the top two cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) have daily address activity that suggests a bullish future for the two cryptocurrencies, particularly for ETH.
The daily active addresses according to Santiment show clear bullish divergence from what the prices suggest. In other words, there is an increasing number of daily active addresses despite the sideways movement of prices.
Bitcoin price particularly has been struggling in the last 3 weeks. ETH has also not done very well as the price is still largely dependent on Bitcoin and the same pattern is observed in the other top cryptocurrencies as well.
Investors are wondering if this is the right time to buy Bitcoin or a lower price may be in view in the short term. Some say a lower dip is possible before any serious price surge, but with the current promising on-chain activity, the story may change sooner than expected.
Bitcoin’s daily active addresses are not the only metric on the increase. The network’s hashrate and mining difficulty have also been on the rise this year. Mining difficulty has however recently been on a decline.
It experienced the biggest drop since 2011 a few days ago, clearly due to the COVID-19 pandemic which has been ravaging the world. Miners have abandoned their mining farms as mining has become unprofitable recently like any other sector of the world economy.
Galaxy Digital CEO Michael Novogratz earlier called on investors to buy Bitcoin, probably because of the current on-chain activity. As prices thrive, it will be interesting to see what happens to the price of both BTC and ETH in the coming days and months especially as the halving is drawing nearer.