Predicting the future of digital assets like Bitcoin is often challenging. However, crypto analysts have been keeping a close eye on recent on-chain activity to gauge the health of the market, and their observations are pointing towards a potential resumption of the Bitcoin bull run.
Analyst Ali recently shared insights into Bitcoin’s on-chain activity. He noted that a bull run in cryptocurrency is typically characterized by increased on-chain activity.
This phenomenon indicates that the network fundamentals are strengthening, and there’s a surge in usage. Interestingly, despite Bitcoin’s relatively stagnant price, its on-chain activity is expanding. The much-awaited Bitcoin bull run may be on the horizon.
Santiment, a reputable crypto analytics firm, also weighed in on the situation through a tweet. They highlighted that Bitcoin’s on-chain activity had reached levels that have not been seen since April. Utility, a key indicator of a cryptocurrency’s health and adoption, is notably higher.
Additionally, they noted a significant decrease in dormant BTC wallets, with the third-largest day of such activity in three months occurring recently. The $27,000 price level for Bitcoin is proving to be a pivotal point of interest among market participants.
Bitcoin Price Suppression At $27.5K
Meanwhile, Material Indicators provided further insight into the market’s current dynamics. According to their tweet, in the last 8 hours, whenever BTC’s price approached the $27,500 mark, there was a notable increase in ask liquidity and market sell orders.
It resulted in downward pressure on the price. While this behavior might suggest that entities attempt to suppress the price, it doesn’t necessarily mean that the $27,500 level is impenetrable.
Analysts believe that this price suppression activity is in anticipation of an announcement by Federal Reserve Chairman Jerome Powell regarding interest rate hikes scheduled for Wednesday.
The cryptocurrency community has been discussing and anticipating this event for several days, and market participants seem to be taking preventive measures. This cautious stance is especially relevant for those who entered the market near its recent highs.
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