The markets appear to be in favor of the bulls as an attempt to rise beyond $19,000 was quickly nullified. The price continues to struggle around these levels as the Bitcoin price is again entering the lower support zone. The asset failed to sustain above $19,000 as the price rose significantly with the rise in volume.
Furthermore, network activity has been cut heavily, which suggests that the bull run may be far from over. A prominent on-chain analyst believes that the massive drop in active addresses could certainly hinder the upcoming BTC price rally.
According to the analyst, the active addresses denote the current demand for the trading asset, and a decline in the activity leads to consistent price drops. This may further drive short-term investors and newcomers away from the asset.
During the last bear market, market sentiment changed sharply as the asset began a quick recovery after exiting the bottom. Therefore, increasing recovery in network activity coupled with rising prices indicated a steady rally. But, at present, the demand has dropped significantly and the liquidity continues to increase during the bearish trend.
However, the analyst hopes demand for Bitcoin (BTC) price will increase slightly in order to set up a long-term sustainable rally.
“There is no stable setup for a long-term sustainable rally; We are not there yet. Risk-enhancing macro frameworks may be required to see a return to business demand.”
