The number of active Bitcoin addresses declines after dropping below $100,000 – A bullish pattern in volatility?
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Bitcoin (BTC) is currently facing a critical technical and market moment. Although Bitcoin briefly broke through the $100,000 barrier, it quickly encountered severe selling pressure, causing it to drop swiftly below $95,000, failing to maintain its previous upward momentum. Currently, Bitcoin's price hovers around $95,000, and the next few days will be crucial in determining its short-term trend.
Current Market Sentiment and Challenges
Bitcoin price sharply drops: falling about 7% from its recent high of $102,300, leading to unsettled market sentiment. Investors and analysts are closely monitoring the $92,000 region, which is considered a key support level for Bitcoin's ability to continue rising.
Decrease in active addresses: According to analyst Axel Adler, since Bitcoin broke through $101,000, the average weekly change in the number of active addresses on the Bitcoin network has dropped to extremely low levels. This metric is typically used to measure changes in market participation, and low activity may suggest waning market demand and cooling investor interest.
Key Support Levels: $95,000 and $92,000
$95,000 support zone: Bitcoin's current price is near $95,000, which is particularly important for bulls. If Bitcoin can stabilize in this support zone and regain upward momentum, it may provide the impetus for a subsequent breakthrough of the $100,000 barrier.
$92,000 defense line: If Bitcoin fails to find support in the $95,000 area, the market will turn its attention to the $92,000 region as a stronger support line. If this level is breached, it could lead to further pullbacks, even opening up downward space to $85,000.
Market Uncertainty and Future Trends
Market sentiment: The market is currently dominated by uncertainty. Axel Adler points out that although the current market adjustment seems bearish, historical data shows that similar adjustment periods often occur before significant rebounds. Therefore, despite facing pressure in the short term, a market rebound cannot be ruled out.
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