Bitcoin, the world’s leading cryptocurrency, briefly descended below the $27,000 mark on Wednesday, touching a recent low of $26,940 during trading. This decline materialized following unsuccessful attempts by investors to breach the $27,393 resistance level. Just the day before, Bitcoin had surged to $27,500, spurred by the announcement of Nomura, Japan’s foremost investment bank, establishing a fund aimed at fostering Bitcoin adoption among institutional investors.
According to on-chain analytics firm Santiment, there has been a notable surge in Bitcoin’s on-chain activity, marking levels not witnessed since April. This surge in activity became especially pronounced as Bitcoin’s value rebounded beyond the $27,000 threshold, accompanied by a sustained high count of active addresses.
Santiment also detected a spike in previously dormant Bitcoin activity, indicating that cryptocurrency holders were transferring their assets when the price exceeded $27,000. Furthermore, Bitcoin’s utility witnessed an uptick, with Sunday registering as the third most significant day for dormant Bitcoin movement in the past three months, coinciding with Bitcoin’s price surpassing the $27,000 mark.
Throughout the month of September, Bitcoin boasted an average of 1.1 million daily active addresses, marking the highest figure since April. The increase in dormant Bitcoin activity implies that wallets are taking action whenever the price surpasses $27,000.
Cryptocurrency analyst Ali underscored the relationship between burgeoning on-chain activity and Bitcoin’s price movements, suggesting that heightened on-chain engagement is often a harbinger of a bull run. Ali also pointed out that the monthly average for new wallets has now exceeded yearly averages, signifying improved network fundamentals and heightened usage.
Despite Bitcoin’s price holding relatively steady, Ali speculated that the expanding on-chain activity could be a precursor to the resumption of the Bitcoin bull run. As of the time of reporting, Bitcoin was maintaining a slightly above $27,000 valuation, showing a 0.62% decline to $27,062.
