Bitcoin price consolidates around $94,500 while on-chain metrics signal troubling trends for the crypto market. The Bitcoin network activity has dropped to a two-month low, indicating decreased investor interest in the largest cryptocurrency asset class.
Bitcoin Network Activity Experiences Significant Decline
The Bitcoin network has reached its lowest activity level since November 2024, with the total number of active BTC addresses dwindling to just 667,100. Crypto analyst Ali Martinez noted that this decline reflects a slowdown in network interactions, raising concerns among investors regarding the potential impact on BTC prices.
Potential Downward Scenarios for BTC Price
Investors have begun to converge on the view that BTC could drop below the $90,000 mark, anticipating a correction of 10-20%. The weakness in on-chain Bitcoin indicators heightens the possibility of a correction before the major bull market expected in 2025.
Critical Support Level for BTC Highlighted by Experts
Crypto Patel emphasized the importance of Bitcoin maintaining its critical $92,000 support level. If this level is breached, BTC could correct to the $70,000-$75,000 range. Conversely, crypto influencer Jeremie Davinci believes BTC could surge as high as $350,000 during a bull market. Experts underscore the critical resistance area for BTC between $97,000 and $99,500, indicating that surpassing these levels could significantly influence BTC’s price movements.
Recent macroeconomic factors have also significantly contributed to selling pressure. Strong employment data in the U.S. has pushed back the Fed’s potential interest rate cuts from March 2025 to June 2025. Upcoming U.S. inflation data is expected to be a crucial indicator for BTC and other altcoins’ volatility.
