Bitcoin [BTC] completed last week’s trading session with an astonishing 35.8% increase in value, leading it to bounce out of the deep bear market region, according to Glassnode in a new report.
According to the data provider’s evaluation of the king coin’s on-chain performance, the price increase since 14 March has resulted in BTC moving from a deep bear market to a structure comparable to previous early bull markets.
According to Glassnode, the last week saw higher demand for BTC as network activity surged. “When more people connect and transact inside the Bitcoin economy, it is often associated with periods of increased acceptance, network effects, and investor activity,” according to the paper.
Glassnode examined the BTC Transaction Count and discovered that the coin’s monthly average transaction count increased to its highest level since April 2021, with a monthly average of 309,500 transactions per day. This was a good indicator for the Bitcoin market because only 12.2% of all days saw more transaction volume.
Another sign of BTC’s impending escape from bear territory was the increase in new demand for the leading coin last week. According to Glassnode, the number of unique new BTC users has hit 122,000, with only 10.2% of days witnessing higher new user adoption rates.
The increase in new user adoption on BTC’s network produced network congestion, which increased transaction fees. “Elevated fee pressure is a common precursor to more constructive markets, coinciding with new waves of adoption, reflected by growing demand for blockspace,” according to Glassnode.
The increased demand for blockspace helped miners, as overall miner revenue jumped to $22.6 million per day. According to the study, this was the “highest level since June 2022, substantially exceeding the yearly average.”
Glassnode also evaluated BTC’s Market Value to Realized Value (MVRV) indicator. This tool is designed to evaluate the relationship between the current market value of a cryptocurrency and its realized worth. The on-chain data provider reported that BTC’s MVRV Momentum Oscillator had flipped to positive in the last week, and this meant: “That a big amount of the coin supply was acquired below the current price, and is now back in profit. Similarly to the measures mentioned above, previous occurrences of positive flips tend to correlate with increases in network adoption and on-chain activity.”
