Question #350 ·
How can growing on-chain transaction volumes indicate potential buying opportunities in the Bitcoin market?
- It means miners are hoarding coins instead of selling them on exchanges.
- It suggests that Bitcoin price will remain completely stable over the next period.
- Higher on-chain volumes reflect growing network activity, often signaling potential buying opportunities. Right answer
Why is this the correct answer?
This is correct because rising transaction volumes show more participants are moving or trading Bitcoin. Beginners should understand that when volumes climb during price dips, it often means buyers are stepping in, creating a chance to accumulate at attractive prices before a possible rebound.