- Bitcoin network activity weakens as traders reduce risk and speculation
- On-chain metrics signal prolonged bearish pressure across the Bitcoin ecosystem
- Lower transactions and fees reflect cautious positioning among major participants
Bitcoin network activity is losing momentum as fresh on-chain signals reflect mounting bear market pressure. Data from CryptoQuant shows declining participation across several key metrics. This trend highlights caution among traders rather than aggressive positioning.
CryptoQuant analyst GugaOnChain, a verified contributor on X, revealed that Bitcoin remains stuck in a bear phase. He pointed to the BTC Bull-Bear Cycle indicator as confirmation of continued downside pressure. The 30-day moving average remains below the 365-day average, holding near -0.52 percent. This gap signals weak market strength and limited upside traction.
Beyond price indicators, network participation has softened further. Highly active addresses continue trending lower, reflecting reduced speculative behavior. This slowdown suggests that short-term traders are stepping back from frequent transactions. Similar patterns appeared in previous bear market phases marked by quiet accumulation.
Transaction activity across the Bitcoin network also shows a visible decline. Daily transaction counts dropped from nearly 460,000 to about 438,000. Fewer transactions often signal lower urgency among market participants.
As a result, overall network movement appears restrained. Fee data supports this slowdown narrative. Network fees measured in United States dollars slipped from roughly $233,000 to around $230,000. Lower fees usually indicate reduced congestion and weaker demand for block space. Hence, competition among users to process transactions has eased.
Also Read: Binance Under Fire as $144m Flows Through Flagged Accounts After US Deal
Defensive Network Behavior Reflects Broader Market Caution
Another notable shift appears within the highly active address segment. This metric declined from approximately 43,300 to nearly 41,500 addresses. Such movement suggests large traders and institutional players remain cautious.
Many appear to favor capital preservation over aggressive positioning. GugaOnChain also noted that current conditions resemble patterns seen during the 2018 bear market. That cycle featured falling transaction volumes, declining active addresses, and reduced fees. However, the present market shows a key structural difference.
CryptoQuant data shows the Bitcoin user base now stands near 800,000 addresses. During the 2018 downturn, this figure hovered closer to 600,000. This growth reflects broader adoption and deeper network foundations.
Consequently, Bitcoin appears structurally stronger despite weaker activity. Elsewhere, market analyst Ali Martinez shared a long-term outlook for Bitcoin price behavior. He suggested that Bitcoin could experience a drawdown of nearly 70 percent before establishing a potential bottom around $37,500. His view aligns with historical cycle structures rather than short-term fluctuations.
Bitcoin’s on-chain data paints a picture of reduced engagement and defensive positioning. Network activity continues to slow as participants wait for stronger catalysts. Nevertheless, the expanded user base provides stability during this period of sustained market pressure.
Also Read: Analyst Gives XRP “Context Ladder” – Here’s What Will Happen Between the $10 and $10,000 Price Range
