Bitcoin Active Addresses Decline: Sign of Weakening Market Sentiment

Bitcoin Active Addresses Decline: Sign of Weakening Market Sentiment

## Bitcoin Active Addresses in Decline CryptoQuant contributor Crypto Dan has observed a significant decrease in Bitcoin active addresses over the past three months. This decline suggests a weakening sentiment among market participants, both for Bitcoin and altcoins. Since Bitcoin's failure to break through the $72,000 mark, the market has experienced repeated adjustments and sideways movements. This lack of volatility has led to a decrease in trading activity and a decline in the number of active addresses on the Bitcoin network. Altcoins have also been affected by this sluggish market sentiment. The lack of momentum in Bitcoin has made it difficult for altcoins to gain traction and attract buyers. As a result, the overall market sentiment has weakened further. ## Market Outlook While it is difficult to predict the exact timing, Crypto Dan believes that the adjustment period will end when sentiment becomes extremely depressed, as it is now. Once Bitcoin shows a significant direction, altcoins are likely to follow suit in the second half of this year. This analysis highlights the importance of monitoring on-chain metrics like active addresses to gauge market sentiment. It also serves as a reminder that even during periods of market uncertainty, identifying and following market trends can help investors make informed decisions.