Analyst: Bitcoin activity indicators rise, suggesting the bull market may continue

Analyst TXMC indicates that the technical indicator Liveliness is on the rise, which historically usually represents bullish activity and may suggest that the current market cycle is not yet over. TXMC stated: "Despite the price decline, the activity in this cycle continues to rise, indicating that the demand for spot Bitcoin is supporting the bottom, although it has not yet been reflected in the price trend."

The analyst explained that this indicator is similar to a long-term moving average of on-chain activity, comparing the cumulative spending and holding behavior across all cycles on-chain. They added: "When tokens are generally traded more on-chain, this indicator will rise; when more are held, it will decline, weighted by the time of those tokens. In a bull market, activity typically rises as supply changes hands at higher price levels, indicating that new capital is continuously being injected."