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Bitcoin Activity Indicators Signal Ongoing Market Cycle
According to PANews, analyst @TXMCtrades shared new insights on X, noting that Bitcoin’s key activity indicators continue to rise — a sign that the current market cycle may still be unfolding.
“Activity” refers to the combined effects of all spending and holding behaviors on the Bitcoin blockchain. When tokens move frequently between wallets, activity increases; when they remain untouched, activity decreases. This measure is adjusted based on when each token was initially issued.
Historically, activity expands during bull markets as more supply changes hands at higher prices, supported by fresh capital inflows. When demand cools, momentum weakens and the indicator declines. Because it smooths out short-term volatility, this metric effectively acts like a long-term moving average of on-chain behavior.
Despite recent price pullbacks, activity during this cycle continues trending upward — pointing to a strong underlying demand for spot Bitcoin that current price action does not fully reflect. While activity generally lags behind market movements and should not be viewed as a direct trading signal, its sustained momentum suggests meaningful participation from large market players, even though their identities are unknown.
