According to progeny, Bitcoin hasn’t seen much utility starting January as token circulation and address activity continues to decline since the start of 2022. The on-chain analytics firm pointed out that an uptick in these indicators could also signal a price reversal for bitcoin.
I #bitcoin Not getting a ton of utility for early January, and it’s noticeable in a slight drop $BTC Circulation (unique daily tokens transferred) and active addresses (addresses that transact on the network). Look for an uptick as a turnaround foreshadows. https://t.co/oqw1bq26QW pic.twitter.com/hDGqUV5RP4
— sentiment (@santimentfeed) 10 January 2022
Bitcoin resumed its decline after reaching a high of $47,967 on January 1. Several days of declines eventually brought bitcoin to a low of $39,950 on January 10 as investor sentiment soured. The Crypto Fear and Greed Index has since moved into “extreme fear” as panic reigns in the market.
U.Today previously reported a drop in bitcoin prices on January 11 as Goldman Sachs expressed its expectation that the US Federal Reserve might raise interest rates earlier than previously thought.
Although bitcoin price has corrected slightly to currently trade at $41,883, the apparent indecision by the market is still dependent on price action as seen by the Doji candlestick formed on the daily chart.
What could happen next for the price of bitcoin, a major crypto analyst He believes that “if the level of $40,600 holds, then $42,600 will continue and potentially $46,000 is on the table.”
Bitcoin’s network development remains a major object to watch
According to IntoTheBlock Analytics, Bitcoin’s net network growth remains in negative territory. The pure network development represented by IntoTheBlock provides a view of both user engagement and growth.
Bitcoin has yet to match the increase in active addresses seen in early November 2021, reaching a 30-day low in this key metric on January 1. The Daily Active Addresses (DAAs) indicator tracks the number of new addresses, the total number of active addresses, and more. zero balance address
Daily Active Addresses (DAAs) are a useful way of tracking network activity over time as increasing DAAs indicate more blockchain usage. As such, DAA can often be a leading indicator of price action – demand for network usage can drive demand for blockchain native tokens.