Bitcoin Network Activity Slows Amid Bearish Technical Signals
The Bitcoin network is showing warning signs of slowing activity, according to recent analysis by Yonsei_dent on CryptoQuant. The analyst notes that the Active Addresses (AA) metric, which tracks wallet addresses participating in transactions over a period, has been steadily declining since Q4 2024.
This decline indicates a potential weakening in investor engagement, as AA is often used to gauge investor sentiment on the blockchain. Furthermore, the appearance of a 'death cross', a bearish signal marked by the 30-day moving average crossing below the 365-day moving average for active addresses, suggests looming bearish momentum and possibly extended downturns in both price and network activity.
The Transaction Count has also shown a downward trend since Q4 2024, attributed to global macroeconomic uncertainties and increased risk aversion. Historically, lower transaction volumes have aligned with extended periods of price stagnation or corrections.