Bitcoin price recover as network activity hits 1-yr low
Bitcoin struggles to gain momentum, dropping to a five-day low of $94,500.
Bitcoin price has struggled to gain bullish momentum in recent days, facing resistance near key technical levels while on-chain activity declines.
The price recently dropped to a five-day low of $94,500, due to consistent selling pressure from the 50-day EMA at $98,500.
At the same time, a Bitcoin network activity index has fallen to its lowest level since February 2024, reflecting a 15% drop from its record high in November 2024. These factors combined paint a challenging outlook for Bitcoin price movement.
Bitcoin price dynamics (November 2024-February 2025). Source: TradingView
After briefly reaching a two-day high of $97,600 in the early Asian session on February 10, Bitcoin retraced to $96,800 as the European session opened. This indicates weak follow-through from buyers and continued hesitation in the market. This is also reflected in the neutral position of the short-term 4hr RSI while Bitcoin's longer-term relative strength continues to lean bearish, reinforcing the lack of strong upward momentum.
Cryptoquant index signals lowest bitcoin network usage
A Bitcoin Network Activity Index from CryptoQuant now sits at 3,760, marking the lowest reading in a year. The index, which tracks critical network metrics such as block size, active addresses, and transaction count, has declined below its 365-day moving average for the first time since July 2021, when China banned Bitcoin mining. This signals a widespread slowdown in network usage, which historically correlates with weaker market demand and lower price volatility.
With Bitcoin's price struggling below $98,500 and network activity declining, the market lacks the necessary bullish drivers for a sustained recovery. A decisive move above the 50-day EMA would be required to shift sentiment, but until then, the risk of further declines remains. Traders will be closely watching whether Bitcoin can maintain key support levels or extend its downward trajectory in the coming sessions.
Bitcoin price risks drop to $91,300 amid relative strength weakness and long liquidations. The wave of long liquidations shifted market sentiment into extreme fear.
