Active Addresses decline mirrors 2021 bear market onset, signaling market caution.
Bitcoin’s sideways price action contrasts past peaks, showing indecisive trading.
Key September events could drive Bitcoin’s next price move, influencing market trends.
The current state of Bitcoin’s Active Addresses points towards a pivotal moment in the cryptocurrency market. Active Addresses, a vital metric reflecting the number of wallets participating in transactions, has historically been a gauge of market sentiment.
As per CryptoQuant data, during previous market cycles such as in 2017 and 2021, a sharp decline in Active Addresses coincided with Bitcoin’s price peaks, followed by extended bear markets. This pattern has led to the belief that decreased wallet activity often signals an impending downturn as traders become less active and “hold onto” their wallets.
In 2024, we see a similar reduction in Active Addresses, mirroring levels seen at the start of the 2021 bear market. Yet, unlike past cycles where BTC’s value plummeted after reaching its peak, this market is marked by a prolonged period of stability within a broad range. This sideways movement contrasts w…
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