Bitcoin Reaches New All-time High of $100K as Falling Mean Dollar Age Shows Increased Coin Activity

Bitcoin has officially hit a new all-time high, soaring to an astonishing $100,000. This milestone marks a significant moment in crypto history

Bitcoin price broke another all-time high on Monday, as the crypto reached the $111,900 level. The world’s leading cryptocurrency is now trading above $111,000, and it appears to be aiming for the $112,000 resistance.

BTC/USD 4-hour chart. Source: TradingView

A major on-chain signal that is driving this move is the declining Mean Dollar Age. This metric measures the average age of all Bitcoins on the chain. When this figure drops, it usually means that older coins are being moved, which can be a sign of increased coin activity.

This aligns with the increased transactional activity usually seen during bullish phases, which becomes more apparent with the decreased Mean Dollar Age. In past cycles, similar patterns preceded parabolic price moves.

Get best prices on Bitcoin with Bitrex today!

What does the drop in Bitcoin’s Mean Dollar Age (MDA) tell us?

The decreased Mean Dollar Age in the Bitcoin network, as observed in the latest on-chain analysis by crypto analytics firm Glass Node, is a significant indicator of transactional activity.

This metric, which measures the average dollar value at which each Bitcoin was last sold, usually decreases when older coins, typically held by long-term investors, are being moved.

Conversely, an increase in the MDA suggests that coins are being sold at higher prices, which is common during bearish phases when new buyers enter the market at higher levels.

However, in the current cycle, the MDA is still dropping despite the exponential gains in Bitcoin price. This pattern, which is typically seen during bull markets, suggests that the transactional activity is outpacing the price appreciation.

This disparity is a strong indicator of persistent buying pressure, which is further supported by the high network demand and positive funding rates.

The data points to a continuation of the current trend toward higher Bitcoin prices.

Can Bitcoin reach $115K by the end of the week?

Bitcoin price broke the $111,000 support level earlier today, and it appears to be aiming for the next resistance level at $112,000.

The next major resistance level for BTC/USD is at $115,000, which could be reached by the end of the week if the current rally continues.

However, if the price drops from here, the next support level is at $108,000, which could provide some support for the cryptocurrency.

Overall, Bitcoin price is still in a strong uptrend, and the technical indicators suggest that there is more upside potential in the short term. However, investors should be aware that crypto markets are highly volatile and unpredictable.

Don't miss out on the latest crypto news!

Join the discussion and stay informed with our community on Discord and Telegram.

This post has been modified from the original, which was authored by Ben Duell and published on CoinoMedia. கூறு