Bitcoin investors Cryptocurrencies appear to be showing a cautious approach as evidenced by the recent significant drop in the number of active BTC addresses, indicating a decline in on-chain activity as market instability continues.
Bitcoin sees decline in active addresses
Kyle Dobbs, market expert and host of Crypto Banter, subscriber The development in a recent post on the X platform (formerly Twitter). The decrease in active addresses indicates a decrease in trading volume, which could mean that investors are choosing to wait and see how Bitcoin It will react, given the market condition.
According to the market expert, unlike previous bear markets, the significant drop in the number of active Bitcoin addresses in 2024 indicates a halt in market activity. This pattern points to a broader wave of indecision in the crypto space, where the decline in trading activity is the result of volatility and uncertainty.
Despite the stagnation in prices, Kyle Dobbs noted that investors are watching cautiously, influenced by external forces such as Spot Bitcoin ETFs He also noted that if the number of active Bitcoin addresses increases, it could be a sign of a price increase in the near term.
The post read:
The sharp decline in active Bitcoin addresses in 2024 indicates a market stagnation, which is different from previous bear markets. Despite the stagnant price, investors are watching with caution, influenced by external factors such as ETFs and the US election. A rebound in active addresses could signal a price rally in the future.
The sharp drop comes amid growing speculation that BTC is set to hit a new low. All time high In the near future, indicating the community’s shared confidence in the potential of crypto assets. One crypto analyst who has predicted BTC’s path to a new all-time high is Michael van de Poppe, CIO at MN Consultancy.
Looking at Bitcoin’s recent price action, Van de Poppe said, Underlined While the digital asset may have had a good start to the week, it has spent more than a month trapped in a very tight range between $60,748 and $56,022.
Moreover, the expert claims that once BTC is able to Go Above the $61,000 threshold, this will lead to a significant price increase towards a new all-time high. Van de Poppe’s analysis reflects the resilience of the BitcoinProviding renewed hope for investors and traders.
BTC Hits a Roadblock
Bitcoin, the largest cryptocurrency asset, is trading in a bearish trend as the coin faced a barrier at the $60,000 price level, causing it to drop below the $57,500 level. This sudden drop is due to a broader market decline.
Currently, Bitcoin is trading at $56,666 Bitcoin’s price has fallen by 4% over the past day, according to CoinMarketCap. Despite the price drop, its trading volume has increased by about 28% over the past day, suggesting that investors may be confident in a potential rebound soon.
Featured image from Unsplash, chart from Tradingview.com
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