Daily Bitcoin Network Transaction Spike to Near Record Highs – What This Means for the BTC Price?
The Bitcoin network clocked 432,613 transactions on Sunday the 23rd of April, according to data presented by crypto analytics firm Glassnode.
That’s the third-highest daily transaction count in the Bitcoin network’s history and the highest since the early May 2019 peak of 452,462.
The spike in network activity, which has also pushed the 7-Day Exponential Moving Average (EMA) of daily transactions to above 350,000 (its highest since December 2020), comes despite a recent pullback in the Bitcoin price from the 10-month highs it hit earlier this month to the north of the $31,000 level.
The BTC price was last changing hands in the $27,300s, with prices having found solid intra-day support around the $27,000 level.
The rise in network activity in recent months demonstrates that demand to utilize the Bitcoin network as a settlement layer is robust and improving, a positive sign for the world’s first and largest cryptocurrency by market capitalization.
Other metrics of network utilization have also been trending higher in recent months, including the number of active addresses, the number of new addresses and the number of addresses holding a non-zero BTC balance.
Measures of network utilization aren’t the only on-chain metrics that bode well for the Bitcoin price.
Metrics tracked in Glassnode’s Recovering from a Bitcoin Bear dashboard that include those pertaining to a return of market profitability, the balance of USD-denominated Bitcoin wealth and where spot prices are trading relative to key pricing models have been sending a strong signal in recent weeks that the Bitcoin bear market is now well behind us, and that Bitcoin is likely in the early stages of a new bull run higher.
As of Sunday, seven of eight indicators were flashing
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