Bitcoin Network Activity Slows Amid 'Death Cross' Technical Signal
The Bitcoin network is showing warning signs of slowing activity, according to recent analysis by crypto analyst Yonsei_dent on CryptoQuant.
The Active Addresses (AA) metric, which measures the number of wallet addresses participating in transactions over a defined period, has been steadily declining since the last quarter of 2024.
This decrease in active addresses suggests a potential weakening in investor engagement with the Bitcoin network. In technical analysis, this is considered a bearish signal known as a 'death cross,' where the 30-day moving average (30DMA) for active addresses crosses below the 365-day moving average (365DMA).
The Transaction Count has also been trending downwards 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.