Analyst: Bitcoin on-chain activity is rising, demand remains strong, and this cycle may not be over yet

AI Summary

Analysts point out that Bitcoin activity indicators are rising, which may suggest the market cycle is not over. Despite a price drop, activity continues to increase, indicating a demand bottom for spot Bitcoin and showing that market momentum remains positive.

PANews reported on December 7 that analyst @TXMCtrades stated on X that Bitcoin’s activity indicators are on the rise, potentially meaning this market cycle is not yet finished. Activity refers to the sum of all on-chain lifecycle spending and holding activity. When tokens are net spent, activity increases; when tokens are held, activity decreases, with adjustments based on the token’s issuance time.

During bull markets, as supply changes hands at higher prices, activity usually goes up, indicating new capital inflows. As demand weakens and momentum slows, the indicator declines. It is similar to a long-term moving average of on-chain activity, serving as a concise indicator.

Although prices are trending lower, activity in the current cycle continues to rise, suggesting there is a demand bottom for spot Bitcoin that is not being reflected in price action. While activity generally lags price action significantly—so it is not a market signal—from this perspective, its momentum remains positive. Some large entities are active in the market, but it’s unclear who they are. #成长值抽奖赢iPhone17和周边