Journalist
Posted:
- BTC has won 1.68% for the past 24 hours, at the time of the press.
- The active addresses of Bitcoin have been taken, which is a reflection of the weakening network activity.
Since he hit a new high, Bitcoin almost a month ago [BTC] Has trouble maintaining an upward momentum. In fact, BTC has traded under $ 100k in the past two weeks.
These struggles for Bitcoin are not only insulated on its price diagrams, but also for active users. As far as popular crypto analyst Axel Adler suggested that the active addresses of Bitcoin have been in a free fall.
Source: Cryptuquant
According to him, the volume of active addresses on the network after BTC prices has fallen. The active addresses of Bitcoin have fallen below the annual average and reaches a low of 1.1 million.
This decline is related to BTC, because it suggests a lower network activity with fewer investors who actively participate.
Source: Santiment
Ambcrypto observed this deterioration of network activity because the NVT ratio of Bitcoin is enriched from 89 to a historically high level of 978.
When the NVT ratio reaches such extreme levels, this means that BTC experiences a speculative price pump and that it can be untenable. In earlier cycles, price corrections have followed extremely high NVT ratios.
Source: Bitbo
Likewise, the falling network activity reflects a low demand with investors. This reduced question is proven by the decrease in daily transaction volume from 402k to 350k in the past three weeks.
A decrease in transaction volume confirms our earlier observation that fewer users have interaction with the network.
Historically, rising active addresses coincide with bull markets, while a decrease precedes market corrections, especially in combination with low daily transaction volumes and a rising NVT ratio.
Any impact on BTC?
The decline of active addresses coincided with an increased volatility for Bitcoin. As a result, Bitcoin has difficulty maintaining an upward trend, which leads to consolidation as active users deteriorate.
These market conditions suggest that lower active addresses have influenced the demand side of Bitcoin, which is crucial for a strong up momentum.
If the low demand persists for a long -term period, settings can sell to cover operational costs, resulting in further downward pressure.
If the current trend continues, Bitcoin can decrease to $ 94,992. Even if Bitcoin’s demand side is recovering, the price can try $ 98,830.