Analyst Sunflowr Quant suggests that the recent Bitcoin rally may be driven by genuine economic activity rather than mere speculation, supported by rising transaction volumes.

Historical patterns show that similar holder behaviors often precede local market tops or cooling phases, emphasizing the need to monitor metrics like exchange inflows and funding rates.

On-chain growth remains healthy, with increasing user adoption and utility serving as a solid foundation for the ongoing price increase.

The NVT Golden Cross indicator is declining, indicating that transaction volume is growing faster than market cap, which could signal strong underlying activity.

A notable shift in holder behavior is observed, with long-term holders beginning to sell while short-term holders are accumulating, a pattern typical of late-stage rallies.

Bitcoin's price has surged past $120,000, reflecting continued bullish momentum despite a sharp decline earlier in the week.

On-chain data shows a discrepancy between Bitcoin's market value and its transaction activity, hinting at underlying strength in the market.