Authored by Nancy Lubale via CoinTelegraph.com,
Bitcoin continues to show strength despite a 2.5% correction from its recent high of $82,800 on May 6, according to market analysts.
Key takeaways:
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Bitcoin has re-entered expansion territory, with the Bull Market Support Band now providing support.
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The Stablecoin Supply Ratio has recovered, indicating renewed liquidity.
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Bitcoin’s spot taker CVD has turned positive, signaling real spot demand.
Bitcoin’s momentum is growing
Wealth manager Swissblock stated that Bitcoin’s momentum remains strong, with the recent rally pushing it back into full expansion territory.
Bitcoin is currently consolidating around $80,000, with momentum remaining robust, according to Swissblock.
Analyst The Great Mattsby noted that Bitcoin’s Bull Market Support Band is now acting as support, indicating a bullish trend.
Bitcoin’s liquidity signals strong recovery
The Stablecoin Supply Ratio has rebounded from historic lows, suggesting a return of stablecoin liquidity to exchanges.
The Binance Stablecoin Supply Ratio Oscillator also indicates a recovery, with stablecoin purchasing demand on the rise.
Bitcoin’s transaction activity reaches new highs
Bitcoin’s network activity has surged, with daily transaction count reaching 831,450 on May 9, a 116% increase from the previous month.
Bitcoin’s daily active address count and total fee volume have also risen, indicating heightened onchain activity.
Bitcoin’s real demand returns
Bitcoin’s spot taker cumulative volume delta has turned positive, indicating a shift in capital flow structure.
If the positive trend continues, it could lead to another rally, as seen in previous instances.
Bitcoin’s market value to realized value ratio also suggests a strengthening market structure, hinting at a potential new bull market, as reported by Cointelegraph.