Bitcoin Finally Rebounds From LUNA Debacle

In a turbulent market, Bitcoin (BTC) has achieved a remarkable milestone. The monthly transfer volume of Bitcoin has surpassed its yearly average baseline for the first time since Terra (LUNA) collapsed. This significant development indicates a revival in on-chain activity, reflecting stronger network fundamentals and increased network utilization.

LUNA’s Crash Hit Bitcoin Particularly Hard

Bitcoin was not immune to the shockwaves of the Luna crash, as it dropped below $30,000. However, Bitcoin has shown remarkable recovery and strength since then, climbing back above $30,000 and breaking new records in terms of its adjusted transfer value. This suggests that Bitcoin is still in high demand and has not lost its appeal as a digital asset.

The #Bitcoin monthly Transfer Volume has overtaken the yearly averaged baseline for the first time since the LUNA implosion.

This suggests an expansion in on-chain activity, typical of improving network fundamentals, and growing network utilization. pic.twitter.com/GqzfOpE7DK

— glassnode (@glassnode) June 23, 2023

Bitcoin continues to rise, breaking the crucial $30,000 price barrier. This is significant because the $30,000 level is seen as a key psychological threshold for investors and traders. If Bitcoin can sustain this level, it could boost confidence and potentially drive more price growth.

Nonetheless, some challenges remain in the outlook. The Swissblock signals, a set of analytical tools, indicate that the support at the $30,000 level is not very strong or reliable. A drop in Bitcoin’s price below this level could trigger a retest of the $27,000 support level.

The leading cryptocurrency is facing a crucial test as it approaches the $27,000 support level. This level marks the gap between the CME Bitcoin futures and the spot market for Bitcoin, which occurred during the weekend when the CME was closed. If Bitcoin fails to hold this level, it could enter a bearish phase with low trading and on-chain activity. This would indicate a lack of demand and confidence in Bitcoin, at least in the short term.

As well as this, it is important to take into account that the on-chain indicators, such as the Bitcoin monthly transaction volume, show a rising trend. This means the network’s fundamentals are getting stronger. More on-chain activity is usually a positive sign, indicating more users are using the network, thus potentially creating upward price pressure. However, the market’s overall sentiment remains the key factor here.