The Bitcoin market has been through a dire situation over the past week, with the price falling more than 12%. As the flagship cryptocurrency tests the $77,000 price support, recent on-chain analysis data was released, suggesting investors may have more concerns in the near-term.
Network activity falls to 2020 low despite relatively high prices
In a recent QuickTake post on the CryptoQuant platform, market analyst CryptoOnchain assumed that the Bitcoin price currently has little chance of recovery. Conversely, the analyst suggests that the flagship cryptocurrency could withstand a sustained downturn, especially when other on-chain conditions are taken into account.
Market experts’ posts revolve around Bitcoin active address indicators. This shows the amount of network activity going on within the Bitcoin market by measuring the amount of unique wallet addresses sending or receiving BTC over a period of time (in this case, the last 7 days).
According to CryptoOnchain, the number of active addresses recently fell to 720,000, the lowest level since April 2020. For context, the number of active addresses was as high as 112.6 million as of November 2024. Therefore, the 36% decline from the November 2024 peak to the current reading reflects a significant decline in on-chain activity.
Looking at the chart shared by the analyst, it is clear that the retailer’s network participation declined significantly in late 2025 and hit its 2020 low in early 2026. In particular, the current decline in network activity is becoming more and more diverse. CryptoOnchain notes that the Bitcoin price still remains well above what was seen in April 2020. However, network usage remains at low levels, reflecting the disconnect between network activity and price action.
The analyst concluded that this was a sign of a lack of support (i.e. organic demand) from network users. In this case, losing the $83,000 support could have been a fatal blow to the Bitcoin price. The analyst explains that since Bitcoin’s growth has already occurred without native network support, this has exacerbated the risk of a further downward move.
The current unfolding state of relative inactivity within the Bitcoin network must be reversed for any recovery attempt to survive without ending up as a “bull trap.” Even better, CryptoOnchain stipulates “a new influx of users on the chain” for a sustainable upward movement to gain relevance.
BTC price overview
As of this writing, Bitcoin is worth around $78,743, with CoinMarketCap data reflecting a loss of 6.39% over the past 24 hours.
Featured image from iStock, chart from Tradingview
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