Liveliness Indicator Suggests Continued Bitcoin Demand
Analysts note a rising technical indicator known as liveliness, historically associated with bullish market trends, suggesting the current market cycle may not be finished. Technical analyst 'TXMC' remarked that despite lower prices, liveliness indicates a consistent demand for Bitcoin that isn't reflected in its price. This metric, akin to a long-term moving average for on-chain activity, tracks the lifetime spending of coins against their holding activity. It increases when coins are actively transacted and decreases when they are held. Analyst James Check highlighted that liveliness has remained stable since the 2017 peak, with current levels reflecting a significant return of previously dormant coins. Unlike 2017, where transactions were in the hundreds to thousands, this cycle sees transactions in the billions. Bitcoin's price has fluctuated slightly, dipping below $89,000 before recovering to around $89,500. Analyst Michaรซl van de Poppe suggested that price movements between $86,000 and $92,000 are insignificant, predicting potential tests of these levels.
