The price of Bitcoin fluctuates around $112K, showing signs of recovery after recent dips. However, network activity raises concerns among analysts.
Daily Chart Analysis
On the daily chart, Bitcoin is retesting the $112K level after bouncing from the $107K support zone. The price is currently sitting just under the 100-day moving average, which has turned into short-term resistance. The RSI remains weak near 48, suggesting buyers are present but lack strong conviction.
For now, the $110K area remains the key pivot. If it holds, Bitcoin could aim for $116K and eventually the $124K high. But failure to stay above this zone risks dragging the price back toward $104K, where a larger pool of demand lies.
4-Hour Chart Analysis
The 4-hour chart shows a double-bottom pattern forming around $106K, which has triggered a bounce back toward the $112K neckline zone. RSI has climbed toward 59, reflecting stronger short-term momentum as buyers attempt to regain control.
If bulls can break above $112K with volume, the next target is the $117K supply zone. However, repeated rejections here would weaken the structure and possibly push price back toward the $110K region, making it another battleground for short-term traders.
Onchain Active Addresses Analysis
Despite the price stability, active addresses have been trending downward for months and show no signs of meaningful recovery. This decline suggests that retail participation and organic network demand are fading. Fewer active users often indicate that short-term speculation dominates the market, while real adoption and usage slow down.
This divergence between price strength and weak address activity signals that liquidity is thinner, making BTC more vulnerable to volatility spikes if demand doesn’t return.
While Bitcoin shows some signs of recovery at the $112K level, the decline in network activity worries analysts. It remains uncertain whether the cryptocurrency can maintain its positions and avoid volatility in the future.
