Rising Bitcoin Liveliness Signals the Bitcoin Bull Market May Still Be Alive

A significant on-chain indicator is flashing a strong signal that the Bitcoin bull run may not be over. Bitcoin’s liveliness index, a measure of long-term spending vs keeping, has reached new highs, indicating that strong demand continues even as prices fall.

TXMC, an on-chain analyst, noticed that liveliness has continued to rise this cycle, despite Bitcoin’s recent decline. According to him, this trend signals a strong base for spot demand, which current price action does not fully reflect.

The liveliness metric serves as a long-term moving average for Bitcoin’s on-chain activity. It rises when coins are actively used and falls when more investors prefer to hold. Because it takes into account currency age, it reveals the balance of long-term conviction and short-term trading activity.

Historically, liveliness has increased throughout every Bitcoin bull market because more coins change hands as new capital enters at higher prices. This highlights the recent upward trend.

This Cycle Is Stronger Than 2017, Analysts Say

According to on-chain expert James Check, liveliness has remained range-bound since its peak in 2017. However, it has erupted in a way that indicates a significant return of long-dormant coins something that typically occurs during strong bullish cycles.

Check today’s readings compared to the 2017 Bitcoin bull market, describing that year as the first “mass participation parabola.” However, the current cycle appears to be significantly more intense. He stated that, whereas 2017 deals included hundreds or thousands of dollars, today’s on-chain transfers are worth billions to tens of billions of dollars.

According to Check, this spike marks one of the most significant capital rotations in Bitcoin history, aided by unusually high volumes of “coin days destroyed” a statistic that tracks how long-held coins are spent.

Bitcoin Price Consolidates As On-Chain Signals Strengthen

Bitcoin itself has not moved significantly in the last 24 hours. It briefly fell below $89,000 before recovering to around $89,500, almost precisely where it had traded the day before

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According to market expert Michaël van de Poppe, the price range of $86,000 to $92,000 is “noise” and does not predict Bitcoin’s next major rise. He cautioned that if Bitcoin reaches $92,000, it may break higher. If not, a drop into the low $80,000s could indicate a double bottom, which is generally a precursor to bullish continuation

Despite the short-term uncertainties, van de Poppe remains optimistic. He believes Bitcoin is nearing a bottom and forecasts a significant rally until the end of the year and the first quarter of next year, supporting the entire Bitcoin bull market thesis.