Key Insights on Bitcoin Market Strength
Analyst TXMC has highlighted the rising Bitcoin Liveliness indicator, an on-chain metric that suggests potential ongoing bull market activity despite the current price downturn. This rising indicator implies strong spot demand for Bitcoin, hinting that the market may remain active and resilient, which can affect investors' confidence in its long-term prospects.
TXMC emphasized that the Liveliness indicator's upward trend historically signifies a bull market phase. The analysis suggests that strong Bitcoin demand continues, even if it is not immediately reflected in current price movements. The Liveliness indicator compares on-chain spending activity against holding patterns and is described by TXMC as acting "like a long-term moving average of on-chain spending vs. holding and is useful for identifying cycle phases." When more aged tokens are spent, the indicator rises, indicating active spot demand despite current price drops.
Despite weak Bitcoin prices, experts like TXMC suggest that structural demand remains firm. Eric Balchunas commented that Bitcoin's downturn should not be compared to a bubble collapse but rather viewed within a long-term trend of adoption. This perspective supports the idea that underlying demand for Bitcoin remains robust.
Bitcoin's Market Dynamics and Historical Context
The Liveliness indicator has risen significantly during previous Bitcoin bull markets, suggesting a possibility of ongoing demand and structural consistency in current market conditions. This historical correlation provides context for the current upward trend in Liveliness.
As of December 7, 2025, Bitcoin (BTC) traded at $89,335.08 with a market cap of $1.78 trillion, holding a 58.53% market dominance. Bitcoin's price has decreased by 27.08% over the past 60 days but increased by 3.01% in the last 24 hours, according to CoinMarketCap data.
Coincu research indicates that the persistence of strong on-chain demand, even in the face of price corrections, points to potential future growth. Over time, these trends could reinforce Bitcoin's long-term adoption and bolster market confidence.