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. Related Reading: Ark Invest Analyst Believes Bitcoin Could Reach $1 Million, But How? 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. Related Reading: Bitcoin Rise Fueled By Stablecoins, On-Chain Data Suggests 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
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