In 2024, the Bitcoin network reached a notable low in the number of active addresses, matching figures from three years ago when Bitcoin (BTC) was priced at around $45,000, according to CryptoQuant data.

The distribution of active addresses is decreasing, which means there is less activity in the network and, therefore, fewer transactions. This decline might be because people may no longer be as interested in actively utilizing Bitcoin now. It may be an unfavorable scenario for the BTC prices especially when accompanied by signs of low trading volumes.

Bitcoin’s trading cycle has remained with the price ranging between $50,000 to $71,000 for the last 180 days. This range means that a market is stagnant and the price may be fluctuating for sometime within this range.

However, depending on the choice of the investor, it could be an indicator to buy it at this lower level of active addresses and lower price. They may regard the comparatively cheap prices as an opportunity to get some Bitcoin and expect further growth in its price in the future.

Falling Bitcoin Activity Could Lead to Increased Selling Pressure

This decline in active addresses is seen as a measure of weakness or the absence of demand in the existing market dynamics, this will put more selling pressure on Bitcoin. In such cases, new support levels must be created. This could lead to higher levels of disinterest in the asset, which might produce further buying opportunities for those who expect a future price rebound.

The current position reflects the existence in the Bitcoin market of the phases which are accompanied by different analyses of the existing trends and their effects regarding the future prices and investment activities. This means that investors will have to pay attention to these developments to know how to handle their Bitcoin investments.

The post Bitcoin Active Addresses Drop to New Low in 2024 appeared first on Live Bitcoin News.