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- The daily transaction volume in Bitcoin
is approaching peak levels.
- On-chain data shows an increase in active traders.
According to on-chain data, the daily transaction volume on the Bitcoin network could indicate the beginning of a bull market!
Transaction Volume on the Bitcoin Network is Increasing!
According to on-chain data, there are currently over 270,000 transfers per day on the Bitcoin network. The relevant indicator here is the transaction volume, which measures the total number of transactions that occur in a day on the Bitcoin blockchain.
When this indicator is high, it means that there is a lot of activity currently happening on the network. This trend indicates that there are active traders in the market right now.
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On the other hand, low values of the indicator show that the network is currently experiencing low activity and there is not much interest among investors in making transfers on the blockchain.
The current metric of interest in the discussion is the “adjusted by asset” version, which only counts transactions that occur between separate assets. Here, “asset” is defined as a single wallet or group of wallets controlled by the same investor.
The Bitcoin Network is Reviving!
As seen in the chart above, while the Bitcoin transaction volume remained at low levels for much of the downtrend, the indicator has revived with the recent rally in the cryptocurrency’s price.
This indicates that investors are not very interested in cryptocurrency when it is going through a boring consolidation phase, but are inclined to make sudden moves when exciting volatile price movements occur.
In the past few days, the indicator has reached particularly high values, as the asset’s rise has continued and the 30-day SMA (Simple Moving Average) indicator has also risen to high levels.
According to the current 30-day SMA transaction volume, transfers on the Bitcoin network occur at a level of 270,700 per day. This is not far from the periodical peak observed at the beginning of a bull market.
The recent rapid growth in the indicator is a sign that the BTC network is growing again after the stagnation in the downtrend. Overall, such growth is a positive development for the price in the long term.