The bearish turnout in Bitcoin [BTC] and the wider cryptocurrency market has left investors distraught. After a bumpy ride this quarter, the king coin was currently hovering near $33k. As its price tumbled, its dominance over the market, too, has been fluctuating between 45-47%.
Despite the gloomy market phase, charts reveal a resurgence in terms of active addresses on the Bitcoin network. In fact, even as the crypto-asset slashed half of its price since registering a peak above $60k, the figures for active addresses have not seen a noticeable decline. This was revealed by the crypto-analytic platform, Santiment. Its tweet regarding the same read,
“Bitcoin is rebounding again, and active addresses are growing slightly following the massive 50%+ drop from the April all-time high. Our Active Address Divergence model shows that though a price drop made sense, address activity hasn’t dropped as much.”
Bitcoin’s bottom a buying opportunity?
The on-chain metrics of the network have also been a cause of concern for the cryptocurrency’s latest price movement. its declining hash rate for one has correlated with the bearish trend as Chinese news-induced FUD continued to damage positive prospects.
Having said that, it is also important to acknowledge that more and more new users are now taking this opportunity to load more coins into their wallets.
According to the popular on-chain analyst Willy Woo, the 7-day moving average of Entities Net Growth demonstrates that the net user growth is “as strong as ever”. The following chart exhibited the formation of a double bottom in May and June. There has been a change in this trend as, since the last few days, the metric seen a revival in user growth. This could potentially signal new users entering the market and buying Bitcoin at a discounted rate.
In addition to that, the long-term holders of the token are changing positions. Also, the declining Bitcoin liquid supply further generated signals of a potential trend reversal in bulls’ favor even as short-term speculators sell-off remains very evident.