Network volume stabilizes in balance zone - what does this mean for price?
When Bitcoin reached the $110K mark, the average network transfer volume rose to $67 billion, however at the current moment the volume has corrected to the level of $58.7 billion.
Since January 2024, the average transfer volume has been consistently within the $40-80 billion range. This range has become a key indicator of network activity balance and market participants' capital. Historically, when the average volume approached the upper boundary ($80 billion), this coincided with local price peaks of $70K and $100K. Conversely, movements toward the lower boundary ($40 billion) were accompanied by temporary weakening of activity, but were soon bought up by network participants.
The current $58.7 billion corresponds to the midpoint of the range and reflects a state of stable equilibrium, similar to a consolidation phase before a new movement, analogous to the mid-2021 period.
As long as the indicator remains above the $40 billion level, we can speak of a stable fundamental market condition. Rising volumes above the $80 billion mark will confirm strengthening activity and fresh capital inflow. On the other hand, a sustained drop below $40 billion will indicate weakening network demand and may be a harbinger of a deeper correction.
I'd like to remind you that each week I publish a detailed review on Substack, where I analyze not only on-chain data, but also macroeconomics, stocks, futures, and news from the past week, providing practical recommendations for Bitcoin. You can subscribe here: adlerinsight.com
Good luck,
AAJ
Written by AxelAdlerJr
