Momentum for the number of Bitcoin transactions reaches the highest level in over 2 years
As Bitcoin (BTC) attempts to put behind it the effects of last year’s bear market, the virgin crypto is registering a positive shift in its onchain activities.
Notably, as of February 21, Bitcoin’s current demand for inscription transactions, which stands at 1.14, has pushed the asset’s transaction telemomentum to its highest level since January 2021, data of cryptanalysis platform Glass node indicates.
“The rapid increase in the number of transactions reflects a significant increase in network activity, as demand for on-chain transactions begins to return,” Glassnode said.
Implications of Bitcoin’s Transactional Momentum
In particular, this is a significant development for Bitcoin, which has struggled to maintain a consistent level of activity on the chain in recent months as the general market downturn affected the asset. Along these lines, the metric highlights the overall health of the Bitcoin network while providing a glimpse of what to expect, especially on the price movement front.
It is worth noting that the last time the transaction volume increased, Bitcoin built the foundation for a bull run that culminated in an all-time high of nearly $69,000 in late 2021.
In fact, the renewed onchain activity coincides with a period when Bitcoin has registered increased attention to various features. As reported by Finbold, the Taproot feature hit its highest adoption level of 13% on February 16.
Transaction mania can also be attributed to the Ordinal inscription on the network. In this case, Ordinals are non-fungible tokens (NFT) that can be stored permanently inside the blockchain.
Bitcoin price analysis
At press time, Bitcoin was trading at $24,709 with daily gains of just over 1%. Overall, BTC is trying to regain the $25,000 position which has been earmarked to trigger a sustained rally towards $30,000.
The latest price move comes as technical indicators for Bitcoin point to possible bullish momentum in the coming days. According to a Finbold report, historical data indicates that BTC is likely to form the basis of a bull run over the next three years.
Finally, the machine learning algorithm at Price predictions indicates that Bitcoin will likely trade at $24,934 on March 1, 2023.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
