Viewpoint: BTC’s online trading volume and active address are short of bull market characteristics

According to reports, market analysis pointed out that although the BTC price has risen by nearly 50% so far this year, both the on-chain trading volume and the increase of active addresses lack the characteristics of bull market.

Interpretation of this information:

The message suggests that the recent surge in Bitcoin price, which has increased by almost 50% since the beginning of the year, does not reflect a bullish market trend. This is because the on-chain trading volume and active addresses have not shown significant growth, which are typical indicators of a bullish market.

On-chain trading volume refers to the total volume of Bitcoin transactions recorded on the blockchain. Typically, trading volume increases during a bull market as more investors buy and sell Bitcoin, leading to higher liquidity and price appreciation. However, this is not the case currently, as the on-chain trading volume has remained stagnant.

Active addresses, on the other hand, refers to the number of unique addresses engaging in a minimum level of activity on the Bitcoin network. This is another important statistic used to evaluate Bitcoin’s market performance. During a bull market, the number of active addresses increases as more people become interested in buying and holding Bitcoin. However, according to the report, there has not been a significant increase in active addresses alongside the surging price.

The interpretation of this message is that the apparent surge in the price of Bitcoin may not be indicative of a bullish trend. This disparity between Bitcoin’s price and its on-chain activity could be due to a number of factors such as a lack of confidence in the market, increased regulatory scrutiny, and market manipulation.

Investors need to exercise caution during this time and remain vigilant to potential risks that may result in a significant drop in BTC price. While experts are still unsure of the Bitcoin’s outlook, investors should focus on the long-term potential of this emerging asset class rather than short-term gains.

In conclusion, despite the sharp rise in Bitcoin’s price, the lack of growth in on-chain trading volume and active addresses has led market analysts to doubt the sustainability of the current market trend. Therefore, investors need to remain cautious and focus on the long-term potential of the cryptocurrency.