The Bitcoin market has been in a frightening week, with the price dropping more than 12%. As the flagship cryptocurrency tests the $77,000 price support, recent on-chain analytics data has been released, suggesting investors may have more concerns in the short term.
Network activity collapses to lowest level in 2020 despite relatively high prices
In a recent QuickTake post on the CryptoQuant platform, market analyst CryptoOnchain hypothesizes that there is currently little chance of Bitcoin price recovering. On the contrary, analysts suggest that the flagship cryptocurrency could endure a sustained downturn, especially considering other on-chain conditions.
Market Quant’s post revolves around the Bitcoin Active Address metric, which reveals how much network activity is going on within the Bitcoin market by measuring the amount of unique wallet addresses that are sending or receiving BTC over a period of time (in this case, the past seven days).
According to CryptoOnchain, the number of active addresses recently decreased to 720,000, marking the lowest level since April 2020. For context, active addresses reached a whopping 1,126,000 as of November 2024. Therefore, the 36% contraction from the November 2024 peak to the current measurement reflects a significant reduction in on-chain activity.
From the graphs shared by analysts, it is clear that network participation of retailers decreased significantly in the second half of 2025 and reached the lowest level of 2020 in early 2026. Notably, the current downward trend in network activity is accompanied by increasing divergence. CryptoOnchain notes that the price of Bitcoin remains at significantly higher levels than what was seen in April 2020. However, network usage remains at low levels, reflecting the split between network activity and price fluctuations.
Analysts conclude that this is a sign of insufficient support from network users (i.e., organic demand). In this case, losing the $83,000 support could have been a fatal blow to Bitcoin price. The analyst explained that this exacerbated the risk of further decline, as Bitcoin’s growth already lacked the support of the underlying network.
For any recovery attempt to be sustained and not end up in a “bull trap,” the relative inertness within the Bitcoin network as it currently unfolds will need to be reversed. Even better, CryptoOnchain stipulates a “new influx of users to onchain” for a sustainable upward trajectory to gain feasibility.
BTC price overview
As of this writing, Bitcoin is worth around $78,743, with CoinMarketCap data reflecting a 6.39% loss over the past 24 hours.
Featured images from iStock, charts from Tradingview
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