On-Chain Data Shows Bitcoin Daily Transaction Volumes Are Up 94%, Rally Might Not Be Over Just Yet

picture of a bitcoin with two fingers on its head, casting the shadow of a bull on the wall

Bitcoin has recently lost momentum following the rally that occurred over the past week. The digital asset had seen gains of over 20% while the entire market followed suit and showed massive gains all across the board. Bitcoin had spent 9 consecutive days closing in the green for the first time in a decade.

As the cryptocurrency sees slowing momentum, the price has experienced various dips that have driven the price down. After the asset had jumped over $42,000 for the first time in over a month. With this slowdown, it seems that the rally has come to its end. But on-chain data shows that bitcoin is picking up steam in other areas.

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On-chain data analysis shows that daily transaction volumes of bitcoin have picked up in the past week. Jumping up 94% to $9.1 billion per day from $4.7 billion per day. Showing that while the price may have slowed down, the volumes have not.

Small Holders Accumulate Bitcoin Aggressively

This report from Glassnode shows that small-time bitcoin holders are accumulating the digital asset even more aggressively than the whales. These wallets which are referred to as the “Shrimp and Crab” wallets are the wallets holding less than 10 BTC on their balance. For the first time, small-time holders now collectively own 13.8% of the entire bitcoin supply.

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The trends show that the wallets have been accumulating coins since May, after the market crash that saw assets losing up to 50% of their value in a short period of time. Wallets holding less than 10 BTC have continuously increased their holdings as the market has dipped and dived through the months.

Accumulation patterns continue to point towards bullish, and so does coin maturation, but these bullish indicators can often take time to develop in the market. Small investors accumulating more coins show more faith in the market. As more and more investors are now choosing to hold their coins instead of selling them off.

Price Movements So Far

Bitcoin price continues to struggle in the $38,000 range following the price dip at the beginning of the week. Momentum continues to remain low in the digital asset while it seems the rest of the market is trying to dissociate from the pioneer cryptocurrency.

BTC price continues to trend low | Source: BTCUSD on TradingView.com

The coin has so far lost over $1,000 in a 24-hour period. Showing a 3.64% decline in the coin price in the past day. Trading volumes have also declined 11% according to CoinMarketCap.

As of the time of this writing, bitcoin is currently trading at $38,358, as the market cap continues to remain above $720 billion.

Featured image from Cointelegraph, chart from TradingView.com

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