Bitcoin Network Activity Slows as Death Cross Forms
The Bitcoin network is flashing warning signs as activity slows down significantly since the last quarter of 2024. According to Yonsei_dent, a crypto analyst on CryptoQuant, this stagnation in price correlates with diminishing network activity.
The Active Addresses (AA) metric, which tracks the number of wallet addresses participating in transactions over a defined period, is a key indicator of investor sentiment on the blockchain. The steady decline in active addresses indicates a potential weakening in investor engagement.
A 'death cross' has appeared, marked by the 30-day moving average (30DMA) for active addresses crossing below the 365-day moving average (365DMA). This pattern suggests looming bearish momentum and possibly extended downturns in both price and network activity.