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.
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Nivesh from Engineering Background is a full-time Crypto Analyst 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