It appears as if Bitcoin’s sudden surge out of its long tied levels of the lower reaches of $9,000 up to $10,000 and above might be legitimate. There has been an explosion of on chain activity and volume which seems to suggest that Bitcoin could break $11,000 and go further than that.
At the moment the coin is nearing $11,000 — less than a $100 short. This latest rally has seemingly come out of nowhere but has been embraced by traders and crypto fans alike as the exchange volume indicates.
Bitcoin was stuck in a lower $9,000 rut for going on eight weeks and the interest in the coin was dying down. This event prompted talk of an altcoin season which could still be developing. But, now that Bitcoin is back above $10,000 and pushing for $11,000 the activity across the exchanges is rampant.
On chain indicators
According to Glassnode, the on chain market indicators for exchanges are way up. Exchange inflow is up over 45 percent and exchange outputs are up over 55 percent. Withdrawals are also around 40 percent up.
These Indicators are seen as painting a more true picture of the state of the ecosystem as unlike regular trading volume that is often artificially inflated by the exchanges, on-chain activity may be more indicative of the true patterns.
However, there is no getting away from the impressive price rise from Bitocin and what that means for the rest of the cryptocurrency ecosystem. When Bitcoin is on a rally, it can often bring with it the rest of the altcoins, and with a possible altcoin season on the rise thanks to Ethereum and Cardano and others, this could be a promising rally.
The low action from Bitcoin was seen as one reason why an altcoin season could be happening as traders shift to smaller coins for bigger volatility and more action. But, what really seems to be the case is that some of these older, more established projects are starting to move along their road map.
Ethereum is on the path to its major upgrade of ETH 2.0, while Cardano is another project that is taking on a major upgrade in Shelly. Both of these show promise to a new level and growth in the blockchain sector and the interest is buzzing around the potential.
This seems to be a good reason for the rise in the price of other altcoins, and less based on speculation. Bitcoin will continue to be the standard in terms of asset-based cryptocurrency, but it is promising to see other platforms rising in value based on their own expansion