Bitcoin (CRYPTO: BTC) has been trading below $70,000 for nearly two weeks, moving sideways and testing traders' patience.

Despite this consolidation, several on-chain metrics are signaling underlying strength.

Network Activity Jumps

Data from CryptoQuant shows a sharp increase in network activity after months of decline.

The Network Activity Index has rebounded alongside key metrics such as active addresses, transactions, UTXOs, and block space demand.

Daily transactions have risen to around 615,000, the highest level since November 2024, indicating stronger on-chain engagement and increased usage of the network.

This surge is happening in a low-fee environment, which is significant.

Lower transaction costs make it easier for exchanges, custodians, and large holders to consolidate UTXOs, rebalance holdings, and move funds efficiently, contributing to higher activity without excessive cost pressure.

There are also signs of a structural shift in transaction behavior, with certain address types becoming more dominant.

Long Term Holders Supply Turn Positive

Another key bullish signal is that long-term holder (LTH) supply has turned positive again, CryptoQuant points out.

After a deeply negative phase (around –674,000 BTC in late November), the metric has rebounded to approximately +308,000 BTC, suggesting that more coins are being held rather than sold.

Since this measure is based on UTXOs (coins unmoved for 6+ months), it reflects reduced selling pressure and growing holding behavior.

Historically, such shifts, where long-term holders accumulate or stop distributing, have often preceded upward price movements. However, the signal isn't foolproof, especially in uncertain or bearish macro environments where temporary improvements can occur without leading to sustained rallies.

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