Bitcoin: Why BTC’s low active address count could signal trouble

• The numerous drop in exercise on the Bitcoin community might exert extra downward strain on the cryptocurrency’s value.
• A key resistance degree, the place notable promote orders are concentrated, might additional problem Bitcoin’s potential to maintain its present worth.

Bitcoin [BTC] has been buying and selling inside a decent vary of $93,000 to $94,000 over the previous few days, reflecting a scarcity of decisive market motion. Whereas this stagnation would possibly point out market resilience, it additionally exhibits uncertainty in regards to the subsequent directional transfer.

Prior to now 24 hours, Bitcoin’s value has skilled a minor decline of 0.75%. Nevertheless, buying and selling quantity surged by 68.66% to $29.41 billion, suggesting that promoting strain might intensify quickly.

AMBCrypto analyzed broader market sentiment to evaluate whether or not this promoting exercise would possibly improve.

Drop in community exercise: Will BTC slide decrease?

Bitcoin’s community exercise has seen a major decline over the previous month, with the variety of lively addresses steadily reducing.

Presently, the variety of lively addresses has dropped to 667,100—the bottom degree recorded since November 2024.

Supply: Glassnode

A decline in lively addresses suggests decreased interplay with the Bitcoin community, doubtlessly signaling decrease transaction exercise. This lack of engagement might point out waning curiosity, which might contribute to a value drop.

Nevertheless, it additionally means that the remaining lively addresses would possibly management a notable portion of the BTC provide. Elevated shopping for exercise from these addresses might doubtlessly set off a value rally.

Impediment to future rally

If lively addresses improve their shopping for exercise for BTC, the asset might encounter a key provide zone because it traits greater, in response to information from IntoTheBlock.

IntoTheBlock’s “In/Out of the Cash Round Value” metric, which identifies provide and demand zones, exhibits that between $95,900 and $98,600, BTC might face promoting strain.

At this degree, roughly 1.46 million addresses maintain potential promote orders for a complete of 1.29 million BTC.

Supply: IntoTheBlock

If BTC efficiently crosses this provide zone, it might reclaim the $100,000 area. Nevertheless, failure to interrupt by would doubtless lead to BTC dropping beneath the $90,000 mark, signaling additional draw back threat.

Elevated provide places BTC rally doubtful

Based on CryptoQuant, BTC trade reserves have been step by step rising. This means an increase within the quantity of BTC out there on exchanges, resulting in greater provide.

– Learn Bitcoin (BTC) Value Prediction 2025-26

Because the eighth of January, BTC reserves on exchanges have grown from roughly 2,354,000 to 2,360,000. Sometimes, a rise in trade reserves is a warning signal that the asset might face extra downward strain from its present value degree.

Supply: CryptoQuant

If trade reserves proceed to rise, it might hinder BTC’s potential to rally from its present ranges.