Bitcoin 30-Day Transaction Count Near Cycle Highs, Bullish Sign?

Keshav Verma

1 year ago

3 mins read

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On-chain data shows the Bitcoin network has been observing a rising amount of transactions recently, something that may be bullish for the price.

Bitcoin 30-Day SMA Transaction Count Is Near Cycle Highs Currently

According to data from the on-chain analytics firm Santiment, more than 270,000 transfers per day are occurring on the BTC network right now. The relevant indicator here is the “transaction count,” which, as its name already implies, measures the total amount of transactions taking place on the Bitcoin blockchain per day.

When the value of this metric is high, it means a large number of movements are taking place on the network currently. Such a trend suggests that traders are active in the market right now.

On the other hand, low values of the indicator imply the network is observing low activity at the moment, signaling that there isn’t much interest in making transfers on the blockchain among the investors.

Now, the version of the metric that’s of interest in the current discussion is the “entity-adjusted” one, which means that it only counts the transactions taking place between separate entities. Here, an “entity” is defined as a single wallet or a group of them controlled by the same investor.

The benefit of making this adjustment is that it filters out all internal wallet transactions being made by investors and exchanges, thus providing a more accurate picture of the activity taking place on the network.

Here is a chart that shows the trend in the entity-adjusted Bitcoin transaction count, as well as in its 30-day and 365-day simple moving averages (SMAs), over the last few years:

The value of the metric seems to have been quite high in recent days | Source: Glassnode on Twitter

As shown in the above graph, the Bitcoin transaction count had been at relatively low levels during much of the bear market, but during the past few months, the indicator has come alive again as the rally in the cryptocurrency’s price has occurred.

These patterns make sense as investors show little interest in the coin whenever the price is showing a boring, consolidating movement, while they rush to make moves whenever some exciting volatile price action takes place (like the latest rally).

In the last few days, the metric has hit some especially high values as the asset’s surge has continued, leading to the 30-day SMA of the indicator also rising to some high levels.

According to the current value of the 30-day SMA transaction count, transfers are taking place at a rate of 270,700 per day on the Bitcoin network. This isn’t too far from the cyclical peak observed back during the start of the bull run.

The latest sharp growth in the indicator is a sign that the BTC network has been growing after the stagnation observed in the bear market. Generally, such growth is constructive for the price in the long term.

BTC Price

At the time of writing, Bitcoin is trading around $29,900, up 5% in the last week.

Looks like the price has plunged during the past day | Source: BTCUSD on TradingView

Featured image from Dmitry Demidko on Unsplash.com, charts from TradingView.com, Glassnode.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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