Bitcoin Network Activity Tanks, BTC Price Risks Crashing To $70K: Analysts
Highlights
- Bitcoin network active addresses have dropped to 667,100, the lowest since November 2024.
- The Bitcoin market support band show possibility of further correction.
- BTC price has seen 30% correction in the January of the post-halving years.
- BTC needs to maintain the crucial support of $92,000 in order to avoid correction to $70K.
Bitcoin price continues to float around $94,500 while on-chain indicators highlight more concerns ahead. The Bitcoin network activity has dropped to the lowest since November 2024 showing a drop in investor sentiment. Market analysts say that if BTC price loses crucial support of $92,000, it risks falling all the way to $70,000.
Furthermore, the macro developments have fueled the recent selling pressure as US jobs data for December 2024 were stronger than expected. As a result, the chances of the first Fed rate cuts for 2025 have moved to June, instead of March. Looking ahead this week, the US CPI and PPI inflation data will serve as crucial indicators to monitor.
Bitcoin Network Activity Hits Lowest Since November
The Bitcoin network has experienced a significant drop in activity marking the lowest level since November 2024. Also, the total number of active BTC addresses has dropped to just 667,100. Crypto analyst Ali Martinez stated that the decline shows a slowdown in network engagement leaving investors concerned regarding potential implications for BTC price.
There’s a growing chorus that BTC could plummet further below $90,000 levels with investors expecting another 10-20% correction from here. Furthermore, with on-chain Bitcoin indicators showing weakness, there’s a greater possibility of a correction before we resume the mega bull run in 2025.
The 7-day moving average of the Short-Term Holders’ SOPR (Spent Output Profit Ratio) has fallen below 1, signaling that, on average, short-term holders are selling their assets at a loss.
On the upside, analyst Martinez highlighted a critical resistance zone for BTC anywhere between $97,000 and $99,500. In this range, approximately 1.26 million accumulated 1.22 million BTC previously. Martinez notes that breaking above this level could prove pivotal for BTC price trajectory.
How Low Can BTC Price Go From Here?
Explaining the popular Bitcoin bull market support band, popular crypto analyst Benjamin Cowen stated that the BTC price corrects up to 30% in January of the post-halving years, citing historical trends.
He noted that the bull market support band has continued to rise as the BTC price consolidates around $94,000 levels. The 20-week estimate is currently just above $81,000 while the 21-week EMA is just above $84,000. So far in January, Bitcoin has gone as low as just above $90,000
Drawing parallels from January 2024, crypto analyst Benjamin Cowen stated that the BTC price could see a few months of consolidation before bouncing back strongly. In the meantime, there’s every possibility of major drops before BTC bounces back into the upper range.
#Bitcoin Bull Market Support Band pic.twitter.com/dhJ8diJ8n0
— Benjamin Cowen (@intocryptoverse) January 13, 2025
Another popular analyst Crypto Patel noted that Bitcoin needs to stay above the crucial support level of $92,000. If it breaks under this support, we could see a correction to $70K-$75K before further targeting a rally to $150K-$160K on the upside. Crypto influencer Jeremie Davinci still believes that BTC could still soar to $350,000 in the bull run.
As of press time, Bitcoin price is trading 0.34% down at $94,178 with a market cap of $1.864 trillion. As per the Coinglass data, the open interest is just above $60 billion while the 24-hour liquidation stands at just under $50 million.
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