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.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com