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Bitcoin [BTC] Bull Run Has Just Begun Transaction Volume Suggests

Bitcoin has witnessed a roller coaster ride in May as its recorded new yearly highs above $9000 after rejecting successive pullbacks. Nevertheless, it dropped below $8000 almost instantly after the rise again.

The On-Chain Transaction Volume on Bitcoin [BTC], is also on the rise. It is a market indicator which signals the on-chain activity or the amount of money being moved on the ledger. The daily transaction volume, according to coin-metrics, is about $8 billion.

The last time the on-chain volume was this high during July of 2017 when the altcoins were on the rise and Bitcoin broke above $4000. On the other side of 20,000, an equivalent on-chain volume corresponded with a price of about $9000.

Willy Woo, an analyst, had noted in the first week of May 2019 that,

We also need price to be validated with on-chain volume mooning from here. We’ll likely get that confirmation soon in the next 4-8 wks. (I personally think the April 1st break above $4300 will be remembered years ahead as the start of the 2019 bull market).

Bitcoin On-chain
Bitcoin On-Chain Analysis a Month Ago (source)

The trajectory of the graph suggests that both the price and the on-chain volume are currently on the rise. Moreover, the on-chain volume comparison with price indicates that the number of ‘hodlers’ has actually increased like it has been presumed.

The volatility in price and on-chain volume is high on a daily scale; Bitcoin rose more than 55% during May and has corrected over 15% since the beginning of this month.

Bitcoin on-chain
BTC/USD Price Vs. On-Chain Transaction volume (7-Day) (Coinmetrics)

The On-Chain transaction volume has followed an upward trajectory, possibly breaking above the 2017 level which began the bull-run. Hence, the price can be expected to enter the bull-phase soon.

Do you think that the bull run on Bitcoin will continue in the second half of the year as well? Please share your views with us. 

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