Bitcoin active users remain at peak levels despite a recent price dip
Chain analysis firm Saniment reports that Bitcoin’s daily active addresses have remained above the 1 million mark for most of the week, suggesting an increase in utility. Santiment notes that the last time unique addresses were consistently above 1 million for 3 consecutive days was in early December 2021, when Bitcoin traded between $56,000 and $59,000.
The number of active Bitcoin addresses indicates market demand for on-chain transactions and value settlement. When the number of Bitcoin active addresses drops, it may signal the start of a bearish cycle.
Bitcoin price fell to $42,622 on Feb. 11 following recent US Consumer Price Index (CPI) data. According to CoinGlass, $87 million in long positions have been liquidated in the past 24 hours as the price of Bitcoin fell.
Bitcoin price action
Bitcoin (BTC) remains range-bound after two seemingly failed attempts above the $45,000 mark. The BTC price has been within a sideways range between $42,622 and $45,843 over the last four days.
Short-term support was held near the daily MA 50 at $42,447 as buyers reacted quickly to a price decline of almost 5%. Above $45,843, the $46,710 level could be seen as the next level of resistance.
Momentum indicators are strengthening on daily charts for the time being, even though price action still shows high volatility in the aftermath of the US inflation news. If buyers maintain short-term momentum, $50,000 will likely be a stronger resistance level.
At press time, BTC is trading at $43,596, with pullbacks likely to settle in the $40,000-$43,000 region.
