Bitcoin (CRYPTO: BTC) has been trading below $70,000 for almost two weeks, moving sideways and testing traders’ patience.
Despite this consolidation, several on-chain indicators signal underlying strength.
The anime network
Data from CryptoQuant shows a marked increase in network activity after months of decline.
The Network Activity Index has rebounded alongside key indicators such as active addresses, transactions, UTXOs, and block space demand.
The number of daily transactions increased to around 615,000, the highest level since November 2024, indicating stronger on-chain engagement and increased network usage.
This increase takes place in a context of low costs, which is important.
Reduced transaction costs facilitate UTXO consolidation, portfolio rebalancing, and efficient transfer of funds for exchanges, custodial institutions, and large holders, contributing to higher activity without undue cost pressure.
There are also signs of a structural shift in transaction behavior, with certain address types becoming more dominant.
Long-term holder volume is positive
Another key bullish signal is that long-term holder (LTH) volume has turned positive again, notes CryptoQuant.
After a deeply negative phase (around -674,000 BTC at the end of November), this indicator has rebounded to around +308,000 BTC, suggesting that more coins are being held rather than sold.
This measure being based on UTXOs (coins not moved for more than 6 months), it reflects a reduction in selling pressure and increasing holding behavior.
Historically, such changes, where long-term holders accumulate or cease distributing, have often preceded upward price movements. However, this signal is not infallible, particularly in uncertain or bearish macro environments where temporary improvements may occur without leading to sustained rallies.
Image : Shutterstock
