- The number of new Bitcoin wallet creations has fallen dramatically, reaching levels last seen in 2018.
- Despite the decline, technical analyzes indicate a possible upcoming rally after Bitcoin’s halving.
Bitcoin [BTC]the leading cryptocurrency, has been going through a stagnant phase and is struggling to surpass the USD 67,000 resistance level.
It recently hit a 24-hour high of $67,697, but then saw a slight pullback and is now trading around $66,886.
This small fluctuation comes at a time when the Bitcoin ecosystem is showing signs of reduced activity, especially in the creation of new addresses.
Just six months ago, the Bitcoin network was buzzing with activity, fueled in part by excitement about spot Bitcoin ETFs, developments like Ordinals, and anticipation of the upcoming halving.
This led to the average weekly number of new Bitcoin addresses nearly reaching the peak levels last seen in December 2017. However, recent data indicate a significant downturn in this trend.
Dramatic decline in network participation
The seven-day moving average of new addresses on the Bitcoin network has plummeted to levels not seen since 2018.
In concrete terms, there has been a decline from 625,000 new addresses per day six months ago to just 274,000 at the time of writing, according to The Block report. facts.
Source: TheBlock
This drop in new address creation mirrored the situation in early 2018, when interest in joining the Bitcoin network also waned after a period of heightened enthusiasm.
Source: Blockchain.com
Other important figures also show a decline. For example, miner’s income and hash ratecritical indicators for the health and security of the Bitcoin network record lows.
Daily active addresses followed suit, dropping from over 73,000 in early March to less than 20,000 at the time of writing, based on facts from Santiment.
Source: Santiment
Bitcoin: Market Outlook Amid Falling Data
While the decline in these figures may appear negative, it is essential to understand the broader context.
Historical data suggests that Bitcoin often undergoes significant corrections before a major rally, especially after the halving.
Technical analysis indicates that Bitcoin could fall to around $60,000, a level considered crucial for gathering the liquidity needed to fuel a significant uptrend after the halving.
Source: TradingView
This is echoed by AMBCryptos recent technical analysis on BTC daily chart, showing that Bitcoin tested resistance at the $67.3k level and remained above its 20-day Exponential Moving Average (EMA).
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The Relative Strength Index (RSI) recorded an upswing, indicating that Bitcoin could soon turn its current resistance into support, indicating a bullish short-term outlook.
However, the Chaikin Money Flow (CMF) suggested that a potential price correction could be imminent.