Bitcoin Network Slows Down Amid 'Death Cross' Signal

The Bitcoin network is flashing warning signs as activity slows down, according to recent analysis by crypto analyst Yonsei_dent. The Active Addresses (AA) metric, which tracks the number of wallet addresses participating in transactions over a defined period, has been steadily declining since Q4 2024.

This decline indicates a potential weakening in investor engagement on the blockchain. Furthermore, the appearance of a 'death cross', a bearish signal in technical analysis, marked by the 30-day moving average (30DMA) for active addresses crossing below the 365-day moving average (365DMA), suggests looming bearish momentum and possibly extended downturns in both price and network activity.

Additionally, the Transaction Count has 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.