On-chain data shows the number of active Bitcoin addresses have remained at a low value for a while now, suggesting there isn’t much demand for the crypto currently.
Bitcoin Active Addresses have continued to move sideways recently
As pointed out by an analyst in a CryptoQuant post, the BTC network activity has been low in recent days, implying there isn’t enough demand for a bull rally just yet.
The “number of active addresses” 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.
This metric indicates that the network is witnessing a lot activity. This trend indicates that traders are very interested in crypto.
On the other hand, low values of the indicator can suggest the chain isn’t viewing much trading activity at the moment.
Below is a chart depicting the change in Bitcoin active addresses during the past few years.
The value of this metric seems to have been very stagnant over the past months. Source: CryptoQuant| Source: CryptoQuant
You can see that the graph shows the trend periods for Bitcoin active addresses as highlighted by the quant.
Indicators have been low or stagnant in bear markets for a long time. The reason is simple: large falls in the value of the indicator often discourage newcomers from crypto trading and cause them to stop their activity.
In times preceding bull runs, there has been a gradual increase in active addresses. Prices eventually reached a peak. This uptrend indicates a growing demand for Bitcoin by all types of traders.
Recently, the metric has stuck in sideways motion as crypto was in the middle of bear markets. There still hasn’t been, however, any sign of the number of active addresses going up yet.
The analyst explains that this recent low demand suggests BTC still hasn’t built up any stable setup for a long-term sustainable rally that can lead to a new bull market.
BTC price
At the time of writing, Bitcoin’s price floats around $18.8k, up 1% in the past week. In the last month, crypto lost 12%.
The below chart shows the trend in BTC’s price over the past five days.
It seems like crypto's value has not moved much in the past few days. Source: TradingView - BTCUSD| Source: BTCUSD on TradingView
Hans-JurgenMager.com featured image, charts by TradingView.com, CryptoQuant.com chart
