Analyst: Bitcoin on-chain activity is rising, demand remains positive, and this cycle may not be over yet

Analyst @TXMCtrades stated on platform X that the activity indicator for Bitcoin is rising, which may suggest that the current market cycle is not yet over.

Activity is the sum of all lifecycle spending and holding activities on-chain. Activity rises when tokens are net traded; it decreases when tokens are held, adjusted according to the token's issuance time. In a bull market, as supply changes hands at higher prices, activity typically increases, indicating new capital inflow. As demand weakens, its momentum slows, and the indicator declines. It is similar to a long-term moving average of on-chain activity and serves as a concise indicator. Despite the price decline, the activity in this cycle continues to rise, indicating that there is a bottom in the demand for spot Bitcoin, which is not reflected in the price trend. Although activity usually lags behind price movements, making it not a market signal, from this perspective, its momentum remains positive. Some large entities are taking action in the market; we just don't know who they are.