As Bitcoin (BTC) attempts to put behind the effects of last year’s bear market, the maiden crypto is recording a positive shift in its onchain activities.
In particular, as of February 21, Bitcoin’s current demand for inscription transactions which stands at 1.14, has pushed the asset’s transaction count momentum to hit the highest level since January 2021, data by crypto analysis platform Glassnode indicates.
“The rapid ascent in Transaction Count reflects a significant increase in the network activity, as demand for on-chain transactions begins to return,” Glassnode said.
Implications of Bitcoin’s transaction momentum
Notably, this is a significant development for Bitcoin, which has struggled to maintain a consistent level of on-chain activity in recent months as the general market downturn impacted the asset. In this line, the metric highlights the overall health of the Bitcoin network while offering a glimpse of what to expect, especially on the price movement front.
It is worth noting that the last time the transaction count surged, Bitcoin was building the foundation for a bull run that culminated in an all-time high of almost $69,000 in late 2021.
Indeed, the renewed onchain activity corresponds with a period Bitcoin has recorded increased attention on various features. As reported by Finbold, the Taproot feature hit the highest adoption level at 13% on February 16.
The transaction craze can also be attributed to the Ordinal inscription on the network. In this case, Ordinals are non-fungible tokens (NFTs) that can be permanently stored inside the blockchain.
Bitcoin price analysis
By press time, Bitcoin was trading at $24,709 with daily gains of slightly above 1%. Overall, BTC is attempting to reclaim the $25,000 position that has been touted to trigger a sustained rally toward $30,000.
The latest price movement comes as Bitcoin technical indicators point to a possible bullish momentum in the coming days. As per a Finbold report, historical data indicates that BTC is likely forming the base for a bull run for the next three years.
Lastly, the machine learning algorithm at PricePredications indicates that Bitcoin is likely to trade at $24,934 on March 1, 2023.
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