Bitcoin Network Sees Significant Activity Decline

Written by Ohris M. Greyoon, Blockchain & Crypto Expert

Source: Coinmarketcap

Updated: 1 hour ago

BTC-3.472%

IMX+1.055%

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Decline in Active Addresses: The average number of daily active Bitcoin addresses has decreased from 1.12 million in May 2021 to approximately 624,000, representing a 44% drop, indicating a significant reduction in user engagement that could impact the network's long-term health.
Decrease in New Wallet Creation: New wallet creation has fallen from 489,000 to 278,000 per day, reflecting a waning interest in Bitcoin among users, which may lead to further declines in transaction volumes and affect market liquidity.
ETF Impact on Investor Dynamics: The emergence of spot Bitcoin ETFs has altered traditional investor behavior, allowing institutional investors to access Bitcoin's price fluctuations without engaging directly with on-chain wallets, thereby weakening the direct link between price movements and network activity.
Market Impact of Strategy's Sale: Strategy's recent sale of 32 BTC caused a temporary dip in Bitcoin's price below $72,000, although this represents only a small fraction of its total holdings of 843,706 BTC, highlighting the market's sensitivity to Bitcoin's volatility.

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Technical Analysis for BTC

Technical Sentiment Analysis for Bitcoin (BTC). As of , Bitcoin (BTC) is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 9 technical signals, shows that 5 indicators are flashing buy, while 4 are indicating sell.

Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for BTC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.

Support, Resistance & Moving Averages. From a structural perspective, BTC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.

Bitcoin (BTC) Support & Resistance Level

Name	S3	S2	S1	Pivot Points	R1	R2	R3
Classic	63523.757	67105.219	70917.077	74498.539	78310.397	81891.859	85703.717
Fibonacci	67105.219	69929.467	71674.29	74498.539	77322.787	79067.61	81891.859

About BTC

Bitcoin is a decentralized cryptocurrency originally described in a 2008 whitepaper by a person, or group of people, using the alias Satoshi Nakamoto. It was launched soon after, in January 2009.Bitcoin is a peer-to-peer online currency, meaning that all transactions happen directly between equal, independent network participants, without the need for any intermediary to permit or facilitate them. Bitcoin was created, according to Nakamoto’s own words, to allow “online payments to be sent directly from one party to another without going through a financial institution.”Some concepts for a similar type of a decentralized electronic currency precede BTC, but Bitcoin holds the distinction of being the first-ever cryptocurrency to come into actual use.

About the author

Ohris M. Greyoon

Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.

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