Analyst: Bitcoin On-Chain Activity Increasing, Demand Remains Positive, Current Cycle May Not Have Ended

According to analyst @TXMCtrades on X platform, Bitcoin's on-chain activity indicator is on the rise, potentially indicating that the current market cycle has not yet ended.

On-chain activity is the sum of all lifecycle expenditures and holding activities. When tokens are being traded net, on-chain activity increases; when tokens are being held, on-chain activity decreases, adjusted based on the token's issuance time. In a bull market, as supply changes hands at higher prices, on-chain activity typically rises, indicating new funds entering. As demand weakens, its momentum slows down, and the indicator decreases. It is similar to a long-term moving average of on-chain activity, serving as a concise indicator. Despite the price decline, on-chain activity in this cycle continues to rise, indicating a bottom in spot Bitcoin demand that is not yet reflected in price trends. Although on-chain activity typically lags behind price movements significantly, it is not a market signal, but from this perspective, its momentum remains positive. Some large entities are taking action in the market, but it is unknown who they are.

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