Bitcoin network activity has reached its lowest level in two months, raising concerns among investors. Despite the price consolidating around $94,500, a sharp drop in active addresses highlights a waning interest. Analysts warn that breaking below the critical $92,000 support level could send Bitcoin’s price plummeting to $70,000.
Decline in Network Activity
The number of active addresses on the Bitcoin network has fallen to 667,100, marking the lowest point since November 2024. This drop suggests a decrease in investor engagement and has fueled speculation about further price declines. According to crypto analyst Ali Martinez:
“The slowdown in network activity is a sign of weakening investor confidence, potentially impacting Bitcoin prices further.”
Adding to the concern, data from SOPR (Spent Output Profit Ratio) shows that short-term investors are selling at a loss, further emphasizing market fragility.
Key Support and Resistance Levels
Ali Martinez points to the $97,000–$99,500 range as a critical resistance zone, where approximately 1.26 million addresses hold 1.22 million Bitcoin. Martinez explains:
“Breaking above this range could be pivotal for Bitcoin’s price trajectory. However, a fall below the $92,000 support level might lead to a drop to the $70,000–$75,000 range.”
Analysts believe that while such a dip would be concerning, it could set the stage for a strong rebound, with prices potentially reaching $150,000 in the long term.
Historical Trends and Insights
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Crypto analyst Benjamin Cowen notes that Bitcoin often experiences corrections of up to 30% in January following a halving year. He adds:
“January corrections are common, and patience is key during these periods.”
Currently, the 20-week support band stands at $81,000, while the 21-week EMA is at $84,000, reinforcing the likelihood of short-term corrections.
Long-Term Projections
Crypto Patel highlights the importance of holding the $92,000 support level. He states:
“If Bitcoin fails to maintain this level, a drop to $70,000 is possible, but recovery to $160,000 remains a strong long-term prospect.”
Meanwhile, crypto influencer Jeremie Davinci predicts that Bitcoin could eventually soar to $350,000, despite current challenges.
Current Market Outlook
Bitcoin is trading at $94,178, reflecting a modest 0.34% decline. With a market cap of $1.864 trillion, the 24-hour liquidation volume remains below $50 million, according to Coinglass. As the market navigates this critical phase, Bitcoin’s next moves could define its trajectory for months to come.
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