The past four months saw Bitcoin volatility continue to rise, as prices moved between highs above $10,000 and lows near $6,500. But transaction levels also tell a story of sudden activity just before or during active rally phases.

Bitcoin Activity Linked to Transaction Spikes, but Also Sharp Drops

Bitcoin transactions, both in number and size, tend to pick up as prices move more actively. This trend is noted during price slides, but it is even more pronounced when BTC is climbing. Some of those transactions are ascribed to “whales”, or large-scale bitcoin owners moving into the markets.

Bitcoin price chart

A recent matching of bitcoin prices with on-chain activity shows one significant moment. On November 18, with BTC a bit below $9,000, a sudden spike in transactions occurred. In hindsight, the days after that saw a continuous price slide, showing the transactions were probably made with the intention to dump the coins.

Two more spikes in activity at the beginning of December also precede another price slide to four-month lows. At this point, the…

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