As Bitcoin (BTC) continues to commerce within the low $110,000 vary, a key on-chain indicator has flipped bullish, present indicators of an upcoming worth rally that would propel the highest digital asset to new all-time highs (ATH) within the close to time period.
Bitcoin’s 600,000 Transactions Threshold Takes Heart Stage
In keeping with a CryptoQuant Quicktake put up by contributor Ibrahim Cosar, an necessary correlation between BTC worth and the overall variety of transactions over time stands out.
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The analyst shared the next chart to focus on the connection between Bitcoin’s worth and the overall variety of transactions. Notably, each time the overall transaction depend surges above the 600,000 stage – and even approaches it – BTC’s worth tends to provoke an upward transfer.
The above chart exhibits three earlier cases in 2025 when BTC’s complete transaction depend climbed past 600,000, with an ensuing worth appreciation. In Might, there was a pointy worth improve shortly following Bitcoin’s transaction depend soar.
Related mixtures of transaction depend improve and worth motion surge have been witnessed in August and early September. The CryptoQuant analyst remarked that this sample has turn into notably evident since This autumn 2024. Cosar added:
I’ve been learning on-chain knowledge for a very long time, but it surely’s uncommon to see such a transparent sample. The 600K transaction threshold appears to behave nearly like a sign that triggers Bitcoin’s “worth engine.” That is my private discovery, and the chart confirms it fairly clearly.
The analyst said that rising transaction exercise on the community is a number one indicator of Bitcoin’s underlying utilization and demand. Because the variety of transactions on the Bitcoin community rises, the community turns into extra vibrant and lively.
The rising utilization of the Bitcoin community creates a pure shopping for strain on Bitcoin’s worth, including gasoline to the cryptocurrency’s bullish momentum. In keeping with Cosar, the 600,000 transaction stage is an “exercise explosion” threshold that results in a “worth explosion.”
That stated, the analyst cautioned that no single issue can fully affect BTC’s worth, as it’s depending on a mixture of varied elements, together with macroeconomic backdrop, laws, and buying and selling exercise.
Nonetheless, the importance of an on-chain indicator with such a robust correlation with BTC’s worth shouldn’t be ignored. If the overall transaction depend rises previous the 600,000 stage once more, anticipate BTC to hit a brand new report excessive.
Will BTC Fall Under $100,000?
Bitcoin’s incapacity to decisively break by means of its present ATH of $124,128, recorded on August 14, has bulls frightened concerning the digital asset’s fading momentum. The cryptocurrency is at present at its most oversold stage since April 2025.
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From a technical standpoint, BTC has shaped a bearish night star sample on the weekly chart, elevating the chances of a worth dip under $100,000. At press time, BTC trades at $114,117, up 3.8% prior to now 24 hours.
Featured picture from Unsplash, charts from CryptoQuant and TradingView.com
