Increased activity on the Bitcoin network: will this be reflected in the currency’s price?

Bitcoin network activity has seen a significant increase after months of decline, raising questions about whether this improvement may be reflected in the currency’s price movements in the coming period.

CryptoQuant data shows that the number of daily transactions rose to approximately 615,000, which is the highest level since November 2024.

However, the platform explained that this activity may not be entirely driven by actual demand and may be partly due to technical operations such as portfolio restructuring and asset pooling, especially given the decline in network fees.

On the other hand, trading indicators remain less enthusiastic, with Glassnode data showing lower trading volumes on the platform, reflecting limited investor participation.

Although the market is trying to test new resistance levels, this recovery is not yet fully confirmed.

In terms of market sentiment, Santiment data showed a rise in investor optimism, with one of the highest levels of greed recorded in recent months.

But such cases are often interpreted as contrarian indicators, as markets tend to go against most expectations.

As for the fear and greed index, it is still in the extreme fear zone, reflecting the market’s hesitation and uncertainty.

Looking at the price, Bitcoin hit the $70,000 level before falling to around $68,500 and has been moving in a horizontal range for about two months.

Some analysts believe that this stage may last for a longer period of time, possibly lasting several months, or end with a new round of decline, thus resetting the market.

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