Analysts: Bitcoin on-chain activity is rising, demand remains strong, and this cycle may not be over yet.

According to Mars Finance, analyst @TXMCtrades stated on the X platform that Bitcoin's activity metric is rising, potentially indicating that the current market cycle is not yet over. Activity is the sum of all on-chain lifecycle spending and holding activity. Activity increases when tokens are net traded; it decreases when tokens are held, and adjusts based on the token's issuance date. In a bull market, activity typically rises as supply changes hands at higher prices, indicating new capital inflows. As demand weakens, its momentum slows, and the metric declines. It's similar to a long-term moving average of on-chain activity, a straightforward indicator. Despite lower prices, the activity in this cycle continues to rise, suggesting a bottom in spot Bitcoin demand that isn't reflected in price action. While activity typically lags far behind price action and therefore isn't a market signal, its momentum remains positive from this perspective. Some large entities are taking action in the market; it's just unknown who they are.