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Bitcoin Active Users at Peak Levels Amid Latest Price Drop

Fri, 02/11/2022 - 14:24
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Tomiwabold Olajide
Bitcoin active users remain at peak levels despite a recent price dip
Bitcoin Active Users at Peak Levels Amid Latest Price Drop
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On-chain analytics firm Santiment reports that Bitcoin's daily active addresses have remained above the 1 million mark for the majority of the week, suggesting an increase in utility. Santiment notes that the last time unique addresses were consistently above 1 million for 3 straight days was in early December 2021 when Bitcoin traded between $56,000 and $59,000.

The number of active Bitcoin addresses indicates market demand for on-chain transactions and value settlement. When the number of Bitcoin active addresses drops, it may signal the start of a bearish cycle.

Bitcoin price dipped to lows of $42,622 on Feb. 11 following the recent consumer price index (CPI) data from the United States.  According to CoinGlass, $87 million worth of long positions were liquidated in the last 24 hours as the Bitcoin price fell.

Bitcoin price action

BTC/USD Daily Chart, Source: TradingView

Bitcoin (BTC) remains range-bound after two seemingly failed attempts above the $45,000 mark. The BTC price has been within a sideways range between $42,622 and $45,843 over the last four days.

Short-term support was held near the daily MA 50 at $42,447 as buyers reacted fast to an almost 5% price decline. Above $45,843, the $46,710 level might be considered as the next level of resistance. 

Momentum indicators are strengthening on daily charts for the time being, even though price action still shows high volatility in the aftermath of the US inflation news. If buyers maintain short-term momentum, $50,000 will likely be a stronger resistance level.

At press time, BTC is trading at $43,596, with pullbacks expected to settle in the $40,000-$43,000 region.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.