One of the metric used to analyze the Bitcoin fundamentals is TAAR (Transaction Amount to Active Addresses Ratio) and it is hovering around 7-month highs, potentially adding a fundamental validation to bitcoin's latest price growth.

TAAR is determined by "dividing bitcoin’s 24-hour adjusted transaction volume (USD) by the number of its active addresses to identify how much each active address spends in transactions per day on average."

If TAAR is high, then it means each user (active address) is transacting in high notional values, in other words, the network “quantity” (how much is being spent i.e. transaction volume) is high per the “quality” (how many users are spending the funds i.e. active addresses).

Interestingly, bitcoin’s TAAR is once again clearly rising along with its price in a similar fashion to that seen at the end of the previous bear market, potentially suggesting bitcoin’s latest price growth may be sustainable as long as the network activity continues to rise.

As is shown below, bitcoin was only able to escape its bear market in 2015 once its network activity picked up pace, made evident by the TAAR finally failing to set new lows along with bitcoin’s price and beginning to trend upwards (highlighted in the red square).