Bitcoin's value dipped briefly below $27,000 on Wednesday, reaching a low of $26,940 in recent trading. The fall came after investors' failed attempts to push the cryptocurrency beyond the $27,393 resistance level. Just on Tuesday, Bitcoin had peaked at $27,500, spurred by the announcement that Nomura, Japan's leading investment bank, was setting up a fund to encourage Bitcoin adoption among institutional investors.
On-chain analytics firm, Santiment, reported a significant rise in Bitcoin's on-chain activity from levels recorded since April. The increased activity was particularly noticeable when Bitcoin's value rebounded past $27,000 and active addresses maintained high numbers.
Santiment also observed a surge in dormant Bitcoin activity. This suggests that cryptocurrency wallets moved their coins when the value exceeded $27,000. Moreover, there has been an uptick in Bitcoin utility. In fact, Sunday marked the third most significant day for dormant Bitcoin movement over the past three months when Bitcoin's price surpassed $27,000.
Throughout September, Bitcoin averaged 1.1 million active addresses daily — the highest count since April. The increase in dormant Bitcoin activities indicates that wallets are shifting their coins whenever the price moves above $27,000.
Cryptocurrency analyst Ali highlighted the correlation between growing on-chain activity and Bitcoin's price. He proposed that increased on-chain activity often characterizes a bull run. Ali noted that the monthly average of new wallets has now surpassed yearly averages, pointing to improved network fundamentals and increased usage.
Despite stable prices, Ali speculated that expanding on-chain activity might signal an impending resumption of the Bitcoin bull run. At the time of reporting, Bitcoin was maintaining a slightly above $27,000 value and was down by 0.62% to $27,062.
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