In the midst of market volatility, Bitcoin (BTC) has managed to break a substantial record. For the first time since the fall of Terra (LUNA), the monthly transfer volume of Bitcoin has exceeded its yearly average baseline. This significant development suggests a resurgence in on-chain activity, indicative of strengthening network fundamentals and growing utilization of the network.
Bitcoin has been on an upward trajectory, having recently surpassed the critical $30,000 price threshold. This trend is noteworthy given that the $30,000 mark is considered a key psychological level for investors and traders. If Bitcoin successfully maintains this level, it could inspire renewed confidence and potentially drive further price appreciation.
The #Bitcoin monthly Transfer Volume has overtaken the yearly averaged baseline for the first time since the LUNA implosion.— glassnode (@glassnode) June 23, 2023
This suggests an expansion in on-chain activity, typical of improving network fundamentals, and growing network utilization. pic.twitter.com/GqzfOpE7DK
However, the outlook is not without potential pitfalls. The Swissblock signals, an array of analytical tools, highlight that the support at the $30,000 level is somewhat tenuous and not significantly robust. If the price of Bitcoin were to fall below this level, we could witness a retest of the $27,000 support level.
This retest would be a decisive moment for the leading cryptocurrency. If Bitcoin is unable to maintain the $27,000 support level, it could fall into a market gap characterized by low on-chain and trading volumes. This could introduce a bearish period for Bitcoin, at least in the short term.
At the same time, it is essential to consider that the on-chain metrics, such as the Bitcoin monthly transfer volume, demonstrate an upward trend. This means the fundamentals of the network are improving. Increased on-chain activity is usually a bullish sign, suggesting more users are utilizing the network, thus potentially creating upward price pressure.
However, the overall sentiment of the market remains the decisive factor here.