Bitcoin [BTC] On-Chain Transaction Volume [USD] Must ‘Moon’ To Confirm ‘Bull Run’: Analysts

A ‘bull market’ is described when the momentum is inclined only towards the positive side. Bitcoin [BTC] rose about 5700% during the bull market of 2016-2017. It was characterized by a phase of continuous rise forming higher highs and higher lows.

The Bitcoin markets have been on the rise since March 2019 as it broke above the $4000 support level on 2nd April 2019. Furthermore, while many traders have confirmed that Bitcoin would not go below the December 2018 lows of $3000, the decision between a bull run or an accumulation phase is still unclear.

On-Chain Volume Must Rise Before the Bull Run?

The on-chain transaction volume is measured in billions USD, it is the volume of USD of all the transactions on the Bitcoin ledger during the day. Bitcoin On-Chain transaction volume has been on the rise since April 2019.

Moreover, the daily on-chain transaction volume was also on the rise during the bull phase of 2016-2017. It was evident during the bull run of 2012-13 as well.

BTC funamentals
Bitcoin On-Chain Transaction Volume (CoinMetrics)

Prior to the previous 2017 bull run, the on-chain volume on Bitcoin was below 500 million USD. Nevertheless, it rose from below 1 billion USD to about 40 billion USD in daily on-chain volume which coincided with the peak of the bull run as well.

Also Read: The Bearish and the Bullish Scenarios for Bitcoin [BTC] from Here: Analysts

Hence, according to this analysis compiled by Willy Woo, David Puell and Murad Mahmudov suggest that the on-chain transaction volume must figuratively “moon” to confirm yet another market indicator for a bull run; suggesting at least a three-fold increase in On-chain volume. The current On-chain volume is around $4.2 billion USD.  He recently reiterated this fact in a tweet,

“We also need price to be validated with on-chain volume mooning from here. We’ll likely get that confirmation soon in the next 4-8 wks.”

Correlation between Bitcoin Bull Market and On-Chain Volume (Source)

On other technical aspects, Woo suggested that that the 200-Day Moving Average and the realized capitalization of Bitcoin [BTC] could both be retested before the bull run. The 200-Day Moving Average on the daily chart on Bitcoin is currently at $4409. However, also reaffirmed his earlier stand on the “Bottom being in” He added in the tweets:

“I’m 95% certain the market has bottomed, that’s to say we are unlikely to break below past lows.”

BTCUSD
BTC/USD 1-Day Chart on Coinbase (TradingView)

Furthermore, as Mati Greenspan had also noted in his interview earlier that the bull market cannot be predicted to accuracy; it can only be experienced when we’re in it. Willy Woo seemed to reiterate the sentiments as well. He added in his tweets,

“(I personally think the April 1st break above $4300 will be remembered years ahead as the start of the 2019 bull market).”

Do you think that on-chain volume “mooning” is required for the next bull run? Please share your analysis with us. 

The post Bitcoin [BTC] On-Chain Transaction Volume [USD] Must ‘Moon’ To Confirm ‘Bull Run’: Analysts appeared first on Coingape.

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