2 signs that indicate this

It’s a special time for Bitcoin’s price. Low activity and extremely low BTC transaction volume. And those are two positive signs.

The year 2021 logically went through peaks and troughs for the volatile digital currency Bitcoin. Records were broken, the coin crashed, bounced back, plummeted again and now BTC is in for a while no mans land.

Two positive signals for Bitcoin’s price

To be clear, past models are no guarantee for the future. This does not alter the fact that the signals are positive according to analysts.

1. Transactievolume

Bitcoin’s on-chain transaction volume currently stands at 5.94 billion, its lowest in three months. The last time BTC transaction volume was this low was right before the all-time high.

According to Crypto Insiders this suggests that Bitcoin is entering a phase of accumulation. During this phase, both large and small investors increase their positions. It is more common for such a phase to precede an outbreak.

2. Illiquide bitcoins

Another sign on the wall is the low activity of bitcoins on the network. This is confirmed by an analysis of Glassnode, which states that Bitcoin’s supply is becoming less and less liquid. According to the analyst, that is a positive signal.

#Bitcoin supply is moving from a Liquid, to Illiquid state at a rate of 100k $ BTC per mth.

Illiquid coins are those sent to an address with little history of spending, generally associated with investor accumulation, and bull market buyers.

Live Chart: https://t.co/08CRwqLMpx pic.twitter.com/3iqTylLPYJ

— glassnode (@glassnode) December 21, 2021

Illiquid bitoins are tokens sent to an address with little spending history, usually associated with investor accumulation and bull market buyers. Accumulation is the gradual building up of a package of shares, without quickly driving up the price.

It is of course impossible to say with certainty whether there will actually be an end-of-year explosion, as has been predicted for a long time. Read also this article, in which experts and critics predict the long-term price of Bitcoin. Some are talking about a million, while others think it is one of the biggest bubbles of this century.