- Bitcoin’s daily active addresses reached about 15 times over 1 million from May to July.
- BTC was trading near USD 29,500, up less than 1%.
Bitcoin [BTC] has been relentlessly striving to reach and maintain the $30,000 price point, a goal that has proven elusive in recent weeks. While one could quickly attribute this to the overwhelming presence of selling pressure, another vital factor could shed light on the sluggish price trajectory.
How much are 1,10,100 XRPs worth today
Bitcoin daily active addresses falter
In addition to Bitcoin’s price movements, which often attract the attention of observers, a crucial metric can significantly affect its value: the number of active addresses. This on-chain activity, as revealed by Santiment’s daily active address metric, is key to unraveling the underlying dynamics.
Taking a closer look at this statistic, it became clear that there is a noticeable decrease in the number of daily active addresses on the network. While a cursory glance may not reveal the full extent of this change, a thorough analysis painted a clearer picture. Throughout May, daily active addresses remained consistently below the 1 million mark.
Source: Sentiment
However, there was a positive development in June when the statistic crossed the 1 million mark seven times. Still, this upward trend eased somewhat as June progressed, with the number crossing the 1 million mark just six times.
At the time of writing, the number of daily active addresses was around 239,000, indicating a remarkable drop. Nevertheless, the 30-day active address statistic offered a glimmer of hope and showed a slight upward trend with total active addresses exceeding 18 million. This upward movement can be traced back to early June, although progress has been relatively stagnant lately, as the chart shows.
How Bitcoin has evolved
When analyzing Bitcoin’s daily trend, May was quite a dull month for this asset. The chart revealed a period of relative calm, in which no significant price movements occurred. Also, no trading session ended with a notable 5% rise or fall.
However, when the calendar moved to June, the scene changed dramatically. The month saw more excitement, with Bitcoin’s price breaking into the highly anticipated $30,000 price range.
In early July, the price tried to extend its range above $30,000, but unfortunately it was unable to sustain this upward momentum. As the last weeks of July progressed, the price trend took a more subdued stance and struggled to continue.
Source: TradingView
The $30,000 price range turned into a psychological resistance level, creating a formidable barrier to Bitcoin’s rise. At the time of writing, it was trading around $29,500, showing minimal gains of less than 1%.
Another notable observation was the short moving average (yellow line) positioning above the price trend, albeit marginally. This configuration indicated that the prevailing price run could have outperformed.
Read Bitcoin (BTC) Price Prediction 2023-24
BTC flow indicates normal flow
Despite Bitcoin’s seemingly insignificant price movement, there has yet to be a noteworthy increase in the exchange rate.
The netflow metric on CryptoQuant indicated a fluctuation between the inflow and outflow in recent days. Interestingly, the recent trend has led to more inflows except July 30. At the time of writing, the inflow hovered around 590, while the outflow was above 200.
Source: CryptoQuant