Bitcoin Momentum Indicator: 600,000 Transactions Threshold Signals Price Surge
As Bitcoin (BTC) trades around $110,000, a key on-chain indicator suggests a potential price rally. The transaction count crossing 600,000 is seen as a signal for price increases.
Key Insights
- The correlation between BTC's price and its transaction count highlights that surpassing 600,000 transactions often leads to upward price movements.
- In 2025, three instances where the transaction count exceeded this threshold led to significant price increases.
- This pattern has become evident since Q4 2024, indicating increased network activity and demand.
- While the 600,000 transaction level acts as an "activity explosion" threshold, BTC's price is influenced by multiple factors, including macroeconomic conditions and regulations.
- If transactions rise past 600,000 again, BTC may reach new highs.
Potential Downside
- BTC struggles to surpass its ATH of $124,128 from August 14, raising concerns about momentum loss.
- A bearish evening star pattern on the weekly chart suggests a possible dip below $100,000.
- Currently, BTC is trading at $114,117, with a 3.8% increase in the last 24 hours.
