On-chain data shows the number of active Bitcoin addresses have remained at a low value for a while now, suggesting there isn\u2019t much demand for the crypto currently.<\/p>\n
Bitcoin Active Addresses Have Continued To Move Sideways Recently<\/p>\n
As pointed out by an analyst in a CryptoQuant post<\/a>, the BTC network activity has been low in recent days, implying there isn\u2019t enough demand for a bull rally just yet.<\/p>\n The \u201cnumber of active addresses<\/a>\u201d is an indicator that measures the total amount of addresses on the Bitcoin blockchain that have been taking part in some activity, whether that be sending or receiving.<\/p>\n When the value of this metric is high, it means the network is observing a lot of activity right now. Such a trend shows the general interest around the crypto is high among traders currently.<\/p>\n On the other hand, low values of the indicator can suggest the chain isn\u2019t viewing much trading activity at the moment.<\/p>\n Now, here is a chart that shows the trend in the Bitcoin active addresses over the last few years:<\/p>\n\n Looks like the value of the metric has been quite stagnant in recent months | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the quant from the post has highlighted the relevant periods of trend for the Bitcoin active addresses.<\/p>\n Historically, bear markets have observed low and stagnating values of the indicator. The reason behind it is that large declines in the price usually scare away newcomers and short-term traders from the crypto, thus killing off activity on the network.<\/p>\n In the times leading up to bull runs, the market has generally seen a gradual buildup of active addresses, which eventually hit a peak alongside the price. This kind of uptrend signals increasing demand for Bitcoin among all kinds of traders.<\/p>\n Most recently, the metric has been stuck in sideways movement as the crypto has been in the middle of a bear market<\/a>. There still hasn\u2019t been, however, any sign of the number of active addresses going up yet.<\/p>\n The analyst explains that this recent low demand suggests BTC still hasn\u2019t built up any stable setup for a long-term sustainable rally that can lead to a new bull market.<\/p>\n BTC Price<\/p>\n At the time of writing, Bitcoin\u2019s price<\/a> floats around $18.8k, up 1% in the past week. Over the last month, the crypto has lost 12% in value.<\/p>\n The below chart shows the trend in BTC\u2019s price over the past five days.<\/p>\n\n Looks like the value of the crypto hasn’t shown much movement during the last few days | Source: BTCUSD on TradingView<\/a> <\/p>\n On-chain data shows the number of active Bitcoin addresses have remained at a low value for a while now, suggesting there isn\u2019t much demand for the crypto currently.<\/p>\n Bitcoin Active Addresses Have Continued To Move Sideways Recently<\/p>\n As pointed out by an analyst in a CryptoQuant post<\/a>, the BTC network activity has been low in recent days, implying there isn\u2019t enough demand for a bull rally just yet.<\/p>\n The \u201cnumber of active addresses<\/a>\u201d is an indicator that measures the total amount of addresses on the Bitcoin blockchain that have been taking part in some activity, whether that be sending or receiving.<\/p>\n When the value of this metric is high, it means the network is observing a lot of activity right now. Such a trend shows the general interest around the crypto is high among traders currently.<\/p>\n On the other hand, low values of the indicator can suggest the chain isn\u2019t viewing much trading activity at the moment.<\/p>\n Now, here is a chart that shows the trend in the Bitcoin active addresses over the last few years:<\/p>\n Looks like the value of the metric has been quite stagnant in recent months | Source: CryptoQuant<\/a><\/p>\n As you can see in the above graph, the quant from the post has highlighted the relevant periods of trend for the Bitcoin active addresses.<\/p>\n Historically, bear markets have observed low and stagnating values of the indicator. The reason behind it is that large declines in the price usually scare away newcomers and short-term traders from the crypto, thus killing off activity on the network.<\/p>\n In the times leading up to bull runs, the market has generally seen a gradual buildup of active addresses, which eventually hit a peak alongside the price. This kind of uptrend signals increasing demand for Bitcoin among all kinds of traders.<\/p>\n Most recently, the metric has been stuck in sideways movement as the crypto has been in the middle of a bear market<\/a>. There still hasn\u2019t been, however, any sign of the number of active addresses going up yet.<\/p>\n The analyst explains that this recent low demand suggests BTC still hasn\u2019t built up any stable setup for a long-term sustainable rally that can lead to a new bull market.<\/p>\n BTC Price<\/p>\n At the time of writing, Bitcoin\u2019s price<\/a> floats around $18.8k, up 1% in the past week. Over the last month, the crypto has lost 12% in value.<\/p>\n The below chart shows the trend in BTC\u2019s price over the past five days.<\/p>\n
\nFeatured image from Hans-Jurgen Mager on Unsplash.com, charts from TradingView.com, CryptoQuant.com<\/p>","protected":false},"excerpt":{"rendered":"