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).
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.
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.
1- Do not invest in every ICO – most of them are a scam.
2- Crypto is a heavily manipulated commodity and the price can change at any moment.
3- The creation cost of a coin represents the “wholesale” price – It is always better to buy when the price is close to the creation cost.
4- Crypto has a natural cash flow that dictates the selling pressure. Like, 1800 bitcoins are mine each day so 1800 bitcoin must be bought at the current price (“means market needs new $18 millions of investment every day if the price is $10,000 to maintain the current price“).
5- Patience and timing are key to making a profit:
Buy, when the price is close to the creation cost.
Sell, when the price is way high off the creation cost.