Bitcoin struggles below $100K as active addresses decline

Bitcoin (CRYPTO:BTC) has encountered significant selling pressure after briefly surpassing the $100,000 mark, only to lose it within three days.

Currently, BTC is attempting to stabilise around the critical $95,000 support level, which will be crucial in determining its near-term trajectory.

Top analyst Axel Adler recently highlighted a concerning trend regarding Bitcoin's network activity.

He noted that the average weekly change in the number of active addresses has dropped to low levels since Bitcoin crossed the $101,000 threshold.

This decline in active addresses suggests waning market engagement and a potential cooling of demand for Bitcoin.

As uncertainty looms in the market, analysts are closely monitoring Bitcoin's ability to maintain its position above $95,000.

Failure to establish support at this level could lead to further declines, while a successful recovery may set the stage for another attempt to breach the $100,000 mark.

Adler's analysis indicates that despite the bearish outlook suggested by declining active addresses, there may be a bullish pattern emerging when adjusted for volatility in the futures market.

Historically, similar patterns have preceded significant rebounds, making the next few days critical for Bitcoin's price action.

Currently trading at around $95,000 after a sharp 7% decline from a recent high of $102,300, Bitcoin's ability to hold above this level is essential for maintaining bullish momentum.

The $92,000 level emerges as a pivotal support zone; losing this could trigger a deeper correction toward $85,000.

Analysts emphasise that current consolidation is a decisive moment for BTC.

If bulls can stabilise prices at $95,000 and regain momentum, a recovery could begin.

Conversely, failure to hold above $92,000 may lead to prolonged consolidation or an accelerated downturn.

The coming days will be crucial as trading volumes and market sentiment will play significant roles in determining Bitcoin's direction.

At the time of reporting, the Bitcoin (BTC) price was $94,309.54.