Bitcoin's on-chain volume is showing bullish signs

On-chain transaction volume is a valuable indicator for understanding the bullish or bearish momentum of BTC and can help spot reversals and break-outs.

In the red box (2020), we see a pattern of transaction volume reaching high levels as the BTC price broke out above previous highs.

Currently, BTC is experiencing a similar and significant breakout in transaction volume, while it is flirting with previous highs. This volume growth can be interpreted as a sign of confidence in the current break-out.

The most likely scenario is that volume will continue to grow as price breaks previous highs.