Bitcoin Price Analysis: Can Increased On-chain Activity Trigger BTC Bullish Outlook?

The post Bitcoin Price Analysis: Can Increased On-chain Activity Trigger BTC Bullish Outlook? appeared first on Coinpedia Fintech News

Bitcoin (BTC) price is gradually forming a reversal pattern that will increase its volatility in the coming weeks. After closing last week on a shooting star pattern and a possible double top coupled with a bearish divergence on the weekly Relative Strength Index (RSI), it is more convincing that a post-ETF reversal is inevitable.

Furthermore, short-term Bitcoin holders and miners have accelerated their profit-taking in the recent past in anticipation of the altcoin season. Notably, Ethereum (ETH) dominance has continued to gain momentum against Bitcoin, following the resounding rebound of the ETB/BTC pair. 

Heightened On-chain Activity 

According to on-chain data, Bitcoin recorded three major transactions totaling about 42,870 coins in the past 24 hours. Additionally, the largest single transaction in the past six months happened during the last 24 hours, which involved more than 11k coins. Notably, the crypto whale investor deposited the huge amount of Bitcoins to a Coinbase wallet, thus sparking increased selling pressure, amid the ongoing bearish sentiments.

According to data analysis provided by Santiment, crypto sharks with below 1,000 Bitcoins have been offloading in the past few days compared to whales with more than 10k that have been accumulating more coins.

Rising Demand for Bitcoin Products

The first three days of spot Bitcoin ETFs trading in the United States proved to be a huge success compared to other ETFs. According to the latest market data, spot Bitcoin ETFs registered nearly $10 billion of cumulative trading volume compared to $450 million recorded by 500 fresh ETFs approved in 2023 in the United States. With more cash inflow expected in the spot Bitcoin ETFs around the world, the macro bullish outlook will undeniably prevail in the coming years.