Bitcoin (BTC) network activity has hit a three-year low amid growing “lack of interest” in the cryptocurrency market.
On-chain analytics platform CryptoQuant warned of a new bearish trend in the BTC price in one of its Quicktake blog posts on September 4.
Bitcoin Transaction Count Drops Nearly 400,000 Per Day
According to the data, Bitcoin trading volumes have declined as a result of months of sideways trading in the BTC price.
In mid-March, when BTC/USD was at its recent all-time high in USD terms, the number of daily active addresses was nearly 1.2 million.
The number currently stands at just 838,000, compared to the recent low of 744,000 in late August. According to CryptoQuant, this is the lowest daily active count since 2021.
“The total number of active addresses on the Bitcoin network is expected to hit a new low in 2024, reaching the same level as when BTC was priced around $45,000 three years ago,” contributor Gaah writes.
“A decline in active addresses indicates a decrease in overall activity on the Bitcoin network. That is, there are fewer transactions, which may reflect a decrease in interest in using the network at this point in the market.”
Bitcoin Active Addresses. Source: CryptoQuant
The data reflects the overall frustration with the current market environment as Bitcoin fails to establish a clear trend.
As Cointelegraph reported, the Puell Multiple, which compares the value of bitcoins mined each day to a 365-day moving average, has also stalled.
For CryptoQuant, both indicators suggest that a long-term buying opportunity may soon arise for market participants.
“For some investors, the decline in active addresses and price could be seen as an opportunity to buy Bitcoin in anticipation of a future rally,” Gaah concluded.
“However, if investors interpret the decline as a sign of weakness or a loss of relevance in the current macro scenario, new support could form, increasing apathy towards the asset and providing new entry opportunities.”
BTC Price “Plummets” Hint at Breakout
The sense that prices operate in a kind of “no man’s land” has not disappeared within the broader analytics community.
relevant: Bitcoin falls 10% after halving, delays reaching all-time high
Checkmate, the pseudonymous creator of the on-chain analytics platform Checkonchain, describes the current setup as “chopsolidation,” a portmanteau of “consolidation” and irregular or “monotonous” BTC price movements within a narrow range.
“The swings are getting bigger and more consistent,” he admitted in a recent post on X.
“This price range is becoming ‘unstable’ and screams to me that the market is ready to move elsewhere.”
Bitcoin intraday price performance. Source: Checkmate/X
Looking at the additional charts, despite the various long-term lows, BTC/USD has yet to make a correction to the levels seen in previous bull markets.
Bitcoin bull market correction declines. Source: Checkmate/X
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