Rising Bitcoin ‘Liveliness’ Indicator Suggests Continued Bull Market: Analysts

A rising technical indicator known as Bitcoin liveliness suggests that the current bull market may persist. Analysts indicate that this trend signifies ongoing demand for Bitcoin, which may not yet be fully reflected in its price.

Key Takeaways

The Bitcoin liveliness indicator is rising, typically indicating ongoing bull market behavior.
Analysts highlight that this trend suggests a strong underlying demand for Bitcoin.
Current liveliness peaks surpass those seen during the last major bull cycle in 2017.
Bitcoin's price appears to be consolidating, with analysts offering insights on potential movements.

Rising Bitcoin ‘liveliness’ indicator suggests bull market may continue: analysts

Bitcoin Liveliness Shows Promising Trends

Analysts have observed an increase in a crucial technical measure known as liveliness, which historically signals active bull market conditions. This indicator suggests that the current market cycle might still be in its early stages. According to the technical analyst known as “TXMC,” “Liveliness continues to rise this cycle despite lower prices, indicating a persistent demand for spot Bitcoin that is not manifested in price movements.”

They elaborated that this “elegant metric” functions like a long-term moving average of on-chain activity, representing a cumulative total of all spending over a coin's lifetime in relation to its holding activity on-chain. “It increases when coins are actively transacting and decreases when they are held, reflecting the age of those coins,” they explained.

Fellow analyst James Check noted that liveliness has remained within a defined range since the peak in 2017.

Bitcoin liveliness has reached a new peak. Source: Glassnode

Current Liveliness Exceeds Previous Cycles

Check compared the current liveliness with that of the 2017 cycle, which was marked by a significant upward trend and wide participation. He pointed out that the new liveliness peaks suggest a remarkable return of previously dormant coins, emphasizing that the current transaction values are much larger.

While transactions in 2017 involved sums in the low thousands of dollars, he noted that this cycle has seen transactions in the range of several billion to tens of billions of dollars.

Bitcoin Price Movement Stabilizes

In the last 24 hours, Bitcoin's price has remained relatively stable, briefly dipping below $89,000 during trading on Sunday morning. At the time of writing, it had bounced back to approximately $89,500, similar to where it was the previous day.

Analyst and MN Fund founder Michaël van de Poppe shared his thoughts on the price: “Anything between $86,000 and $92,000 is pretty much noise. There isn’t much movement expected for BTC.” He noted that if Bitcoin tests the $92,000 level, there is a high likelihood it will break through, but if not, investors should prepare for a potential dip to the low $80,000s for a type of double-bottom pattern.

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