Bitcoin network activity has picked up significantly after several months of decline, but the price of BTC is still holding below 70,000 dollars.
According to CryptoQuant on Monday, activity on the Bitcoin network has recently surged. The firm’s index monitors metrics such as addresses, transactions, UTXOs, and demand for blockspace.
Daily Bitcoin transactions have climbed to about 615,000, marking the highest level since November 2024. Despite this increase, transaction fees remain relatively low, suggesting that some of the rise in activity may be driven by operational processes rather than purely organic demand.
When fees are low, it becomes more cost effective for exchanges, custodians, and large investors to consolidate UTXOs, rebalance wallets, and move funds on chain, CryptoQuant explained.
Exchange volumes, however, are still subdued, indicating that the rise in activity may not be directly influencing price movement, which remains weak. Glassnode noted that the recent breakout comes after a period of consolidation and signals a fresh attempt to push past resistance levels.
At the same time, lower exchange volumes imply that overall market participation is still limited, pointing to a recovery that is forming but not yet fully confirmed.
Santiment analyzed social sentiment and found that many investors expect the rally to continue, with sentiment reaching one of its highest greed levels in the past three months. Still, it warned that markets often move in the opposite direction of crowd expectations.
Meanwhile, the crypto Fear and Greed Index has dropped back into extreme fear territory at a reading of 11, where it has remained for the past couple of weeks.
A well known Bitcoin bull, Sykodelic, maintained a positive outlook, stating that Bitcoin appears to be forming a classic high time frame expanded flat reversal pattern. They added that if the price reclaims 74,400 dollars on the weekly chart, the correction could be over and the market may not look back, regardless of whether it revisits 60,000 dollars.
In terms of price action, Bitcoin briefly reached 70,000 dollars late on Monday before pulling back to around 68,500 during Tuesday morning trading in Asia. The asset has been moving within a range for the past two months, and global news events have had little effect on its direction.
Trader Scott Melker noted that if past trends are any indication, this sideways movement could continue for up to another hundred days or potentially break downward and restart the cycle.
He added that while it is difficult to predict the exact bottom, market sentiment still appears to lean bearish, and if prices follow that trend, expectations may continue to shift lower.#crypto#cryptonews https://coinsignals.nethttps://t.me/coinsignalpublic
