Bitcoin Market Analysis: Understanding the Recent Downturn
The Bitcoin market has recently experienced a significant decline, with prices falling by over 12% in the past week. As Bitcoin tests its crucial $77,000 support level, new data from on-chain analysis indicates potential challenges for investors in the near term.
Network Activity Dips to 2020 Levels Amid Elevated Prices
In a recent analysis on the CryptoQuant platform, market expert CryptoOnchain suggests that Bitcoin’s price recovery prospects are currently slim. The analysis points to a possible prolonged downturn due to various on-chain factors. A key metric under examination is Bitcoin’s Active Addresses, which gauges network activity by tracking the number of unique wallet addresses involved in BTC transactions over the past week.
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CryptoOnchain reports a drop in active addresses to 720,000, the lowest since April 2020. Previously, in November 2024, active addresses peaked at 1.126 million. This 36% decline from the peak indicates a significant reduction in network activity.
According to the chart shared by the analyst, retail participation has notably decreased since mid-2025, reaching 2020 lows by early 2026. Despite Bitcoin’s current price remaining higher than April 2020 levels, network activity remains subdued, highlighting a disconnect between price and activity.
The lack of organic demand from network users suggests a fragile support system for Bitcoin prices. Losing the $83,000 support level exacerbated downward risks, as Bitcoin’s price growth lacked substantial network backing. For a sustainable recovery, a reversal in network inactivity is crucial. CryptoOnchain emphasizes the need for a renewed influx of on-chain users to facilitate a sustainable upward trend.
Current BTC Price Situation
At present, Bitcoin is valued at approximately $78,743. According to CoinMarketCap, this represents a 6.39% decrease over the past 24 hours.
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