Following a sudden downturn, Bitcoin has faced significant selling pressure that caused it to retract towards crucial support zones, engaging traders and analysts alike. Even amid this bearish trend, the underlying network dynamics for Bitcoin continue to show promising activity, hinting at potential resilience in the ecosystem.
Diving Into Bitcoin’s On-Chain Activity
While Bitcoin’s market performance has been less than stellar, recent observations highlight a surge in its network activity. A new analysis by Santiment, a leader in blockchain analytics, underscores that activity within the Bitcoin blockchain has seen remarkable growth, signaling vibrancy in the Bitcoin community.
This unexpected rise in blockchain interactions indicates a healthy engagement from both veteran and new users. It also suggests a rekindled optimism that could lead to a more dynamic market, counterbalancing the current price struggles.
After a period of lethargic activity, key indicators like new addresses and circulating supply are escalating once more. Santiment reports that these recent upticks represent the highest levels of network growth and transaction volume seen this year.
On May 29, over 556,830 new wallet addresses were established, marking a peak not seen since December 2, 2023. Additionally, on June 2, the Bitcoin network experienced its largest circulation day since December 8, 2024, with 241,360 coins traded.
Santiment emphasizes that the upsurge in on-chain activity for Bitcoin presents a generally positive sign for the asset. Monitoring these trends is essential, especially as the broader cryptocurrency market experiences fluctuations.
These newfound peaks coincide with prevailing bearish trends, resulting in Bitcoin trading below the crucial price point of $105,000. The asset has subsequently slipped past this boundary, igniting further downward movement toward additional significant price points.
Despite this price drop, crypto analyst Ali Martinez has identified two pivotal support zones at $103,250 and $101,000. Currently, Bitcoin is hovering around the $103,250 mark, making the $101,000 level particularly crucial to monitor in the near term.
Reinforcement From Major Investors
Even as Bitcoin grapples with a bearish climate, a wave of bullish sentiment appears to be resurfacing among major players in the market. According to data from Glassnode, an analytics firm specialized in blockchain data, there is a notable shift among large investors showing renewed interest in BTC.
The analysis highlights that significant holders, particularly those with over 10,000 BTC, are re-engaging in accumulation after a brief period of selling. This accumulation trend among high-capacity investors illustrates a much-needed vote of confidence in Bitcoin’s long-range potential.
Analysis shows that all wallet sizes are participating in buying activity, with the most robust participation observed in the 10–100 BTC and <1 BTC segments. The accumulation rate across these categories has hit an impressive score of 1.0, the highest achievable level.
