- Bitcoin activity metric is rising, suggesting ongoing market cycle.
- Price declines while activity remains high, indicating demand bottom.
- Large entities active on-chain but remain unidentified.
Analyst @TXMCtrades highlighted on December 7th that Bitcoin’s rising activity metric, reflecting on-chain lifecycle trends, signals a potential continuation of the market cycle.
Significant activity indicates ongoing spot Bitcoin demand, despite price drops, suggesting market resilience as large, unidentified entities engage actively in on-chain transactions.
Rising Bitcoin Activity Hints at Market Cycle Continuation
Bitcoin’s activity metric has been increasing despite recent price declines, according to insights shared by analyst @TXMCtrades. The analyst highlights that this activity, measured by on-chain lifecycle spending and holding, continues to exhibit an uptrend. Such a pattern is akin to a long-term moving average, reflecting deeper market trends rather than immediate price signals.
The persistence of this activity level suggests that the current market cycle might be ongoing, contradicting the bearish sentiments driven by recent price corrections. While on-chain activity usually lags behind price trends, its sustained rise hints at significant spot demand. This observation implies a potential market cycle bottom, potentially poised for growth when conditions align.
Historical Context Shows Mid-Cycle Corrections, Not Market Tops
Did you know? Bitcoin’s on-chain activity metric has historically aligned with mid-cycle corrections rather than cycle tops, suggesting a reset rather than a conclusion of the current bull market.
According to CoinMarketCap, Bitcoin (BTC) maintains a price of $89,640.30 with a market cap of formatNumber(1789093159686.89, 2). The cryptocurrency’s 24-hour trading volume is formatNumber(36747592797.00, 2), showing a reduction of -41.03%. The market dominance for BTC stands at 58.58%. Its price has decreased by -26.53% over 60 days but increased by 0.25% in the past 24 hours. Circulating supply is at 19,958,581 BTC, nearing its max supply of 21,000,000 BTC.
The Coincu research team suggests the resilience in Bitcoin’s activity metric may reflect a broader market trend toward renewed institutional interest. This sustained on-chain activity aligns with historical patterns observed during market accumulation phases, supporting a hypothesis of market cycle continuation amid current price corrections.
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Source: https://coincu.com/markets/bitcoin-activity-metric-rises-market-cycle/