In today’s trade, Bitcoin briefly dropped under $27,000, hitting lows of $26,940 when bulls ran into resistance at the $27,393 level.
Because of the announcement that Japan’s biggest investment bank, Nomura, was forming an adoption fund for institutional investors, Bitcoin had achieved a high of $27,500 the day before.
On-chain analytics company Santiment provides a plausible image of what is happening on the BTC network as Bitcoin tries to regain its feet.
https://x.com/santimentfeed/status/1704406728211652842?s=20
Santiment claims that when Bitcoin’s price returned to over $27,000 and the number of active addresses remained high, there was a significant increase of dormant activity.
In a tweet, Santiment noted that the on-chain activity for Bitcoin has increased significantly since April.
BTC utility is also substantially greater, and on September 19, when BTC crossed $27,000, it saw its third-highest day in the past three months of inactive BTC movement. “The low $27K level is proving to be polarising,” Santiment continued.
In September, BTC had its highest daily average of 1.1 million active addresses since April. The leading cryptocurrency also had an increase in idle BTC, which shows that wallets moved coins beyond $27,000.
Bitcoin bull run might be looming
Crypto expert Ali emphasises the effect of increasing on-chain activity on the price of Bitcoin in a tweet.
https://x.com/ali_charts/status/1704280801280446861?s=20
He asserts that increasing on-chain activity is frequently a sign of a bull run. Ali calls attention to a rise in the average number of new wallets sold each month, which has already surpassed annual norms. He continued by saying that this shows enhanced network fundamentals and rising usage.
The crypto researcher predicts that as on-chain activity is increasing despite stable pricing, the BTC bull run may soon restart.
At the time of writing, BTC was just moving beyond $27,000 and was down 0.62% to $27,062.
While the Bank of England will do so on Thursday at 1:00 p.m. UTC, the Federal Reserve is scheduled to make its interest rate announcement on Wednesday at 2:00 p.m. ET (6:00 p.m. UTC).
