Bitcoin's 'Liveliness' Signal Flashes Green for Bull Market Revival

Onchain activity metrics suggest the rally may have further to run

Technical analysts are pointing to a resurgence in the “liveliness” indicator as evidence that Bitcoin’s bull market cycle remains intact. This onchain metric, which tracks the relationship between coin movement and accumulation patterns, has historically preceded sustained price appreciation during market expansions.

Analyst TXMC noted on Sunday that liveliness continues climbing despite recent price weakness, revealing persistent underlying demand for spot Bitcoin that hasn’t yet surfaced in mainstream trading. “This elegant metric functions as a long-term snapshot of onchain behavior, measuring cumulative lifetime spending relative to holding activity,” TXMC explained. The indicator rises when assets change hands at higher valuations and declines during accumulation phases.

According to TXMC’s analysis, “Liveliness typically accelerates during bull runs as older coins reactivate and trade at elevated prices, signaling fresh capital deployment.”

This Cycle’s Liveliness Dwarfs Previous Peaks

Comparing current market conditions to the 2017 boom, analyst James Check highlighted a remarkable distinction: liveliness has expanded to unprecedented levels. “The 2017 cycle was the first true parabola with retail engagement,” Check observed. “This time, the scale is dramatically different.”

The volume of value flowing through Bitcoin’s network tells the story. Where 2017 transactions involved hundreds to thousands of dollars, today’s movements represent billions of dollars rotating through the system. Check emphasized the magnitude of this shift: “We’ve witnessed extraordinary coin day destruction, reflecting one of the most significant capital reallocations and generational wealth transfers in Bitcoin history.”

Price Action Narrows as Consolidation Takes Hold

Bitcoin has stabilized near the $89,500 level, fluctuating modestly over the past 24 hours after briefly testing $89,000. Analyst Michaël van de Poppe suggested that the current trading range between $86,000 and $92,000 represents noise rather than meaningful directional moves.

“This zone requires watching the $92,000 resistance level closely,” van de Poppe noted. “If we secure that level, continuation appears likely. Should we fail, anticipate testing the low $80,000s for a potential double-bottom formation that could trigger a year-end rally heading into Q1.”

Van de Poppe’s bull market outlook remains constructive: “A Bitcoin bottom may be closer than realized, potentially catalyzing a powerful rebound as we approach next quarter.”