Bitcoin price has dropped about 15% during the first week of 2022, indicating that the new year hasn’t been kind to the king coin. With the top currency still hovering around the $40k mark, rumors of a fresh BTC bottom have begun to circulate. Indeed, others are predicting that BTC price will drop to the old $30K lower barrier in another freefall.
Despite several pullbacks, the asset is on the verge of breaking through the $43,000 barrier. As a result, after the bears failed to push the price below $40,000, bulls must now push the price above $45,000.
Will Bitcoins Bulls Take The Control ?
According to Santiment, Bitcoin hasn’t seen much growth in January, since token distribution and address activity have been declining since the beginning of 2022. There is an increase in these signs, according to the on-chain analytics firm, that could indicate a Bitcoin price reversal.
After hitting highs of $47k on January 1, bitcoin began to fall. As investor mood soured, Bitcoin fell to a low of $39.9k on Jan. 10 after many days of falls. As panic reigns in the market, the Crypto Fear and Greed gauge has switched to “severe fear.”
As Goldman Sachs predicted, the Federal Reserve of the United States may raise interest rates further than previously announced.
Even though the bitcoin price has rebounded to $42,783 at the time of writing, the market’s apparent hesitation is still weighing on the price movement.
“If the $40,600 level holds, continuing higher to $42,600 and possibly $46,000 is on the table,” a prominent crypto analyst predicts for the Bitcoin price.
The Expansion of Bitcoin’s Network
According to IntoTheBlock statistics, Bitcoin’s net network growth is still negative. IntoTheBlock’s net network growth provides a picture of both consumer engagement and growth.
Bitcoin has been unable to match the growth in active addresses witnessed in early November 2021, with this critical measure reaching a 30-day low on January 1. The number of new addresses, total active addresses, and zero balance addresses are all tracked by the Daily Active Addresses (DAAs) indicator.
DAAs (Daily Active Addresses) are a good technique to track network activity over time because higher DAAs indicate more blockchain usage. As a result, DAAs are sometimes used as a leading indicator of price movement—demand for network access may drive up prices for the blockchain’s primary token.