Price Pullback but Indicators Up? This Signal Suggests the Bull Market May Not Be Over Yet

[BlockBeats] There’s an interesting signal lately—even though Bitcoin’s price has pulled back, a technical indicator called Liveliness is climbing.

Analyst TXMC points out that historically, this indicator is often associated with bull markets. His take: “Although the price has dropped, Liveliness is still rising, which means the underlying spot demand is actually very solid—it’s just that market sentiment hasn’t caught up yet.”

Simply put, this indicator is a bit like a long-term moving average of on-chain activity—when coins are frequently changing hands on-chain, it goes up; when everyone is holding and accumulating, it goes down, and it’s weighted by how long coins are held. In bull markets, this indicator tends to rise because coins are being traded at higher prices, indicating that new capital is continually entering the market.

In other words, the data is telling us: don’t just stare at the price chart, the money on-chain is still moving, and this cycle might be far from over. Of course, when the price will catch up is another matter entirely.