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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.
Denys SerhiichukAt 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.
Alex Dovbnya
Gamza Khanzadaev
Dan Burgin