Bitcoin (BTC) Price Forecast: $62k Breakout Could Tigger New Bull Run

Bitcoin price fell 5% within the daily timeframe on Sept 6, slipping deeper into bearish territories. The current Bollinger band and RSI technical indicators’ set-up suggest Bitcoin price could be at risk of a rapid crash towards $50,000 in the days ahead.

The number of unique addresses conducting transactions on the Bitcoin network has dropped significantly, with only 818,273 addresses being active over the last 7-days. This marks the lowest level of network usage recorded since 2021.

For perspective, Bitcoin network demand has seen a staggering 39% decline from the 1.13 million active addresses recorded on March 13, 2024, coinciding with BTC price hitting an all time-high.

This persistent decline in daily active addresses is usually touted as a tell-tale bearish signal, indicating investor disinterest. Notably, the red arrows in the chart above showcase how BTC prices have often fallen significantly during periods of sharp decline in network activity.

Evidently, the 39% Bitcoin network demand downtrend over the last 6 months has been pivotal in BTC retracing 28% from its all-time high of $72,300 on March 13 to hit the $53,334 level at the time of publication on Sept 5.

However, a prominent analyst and host of the Crypto Banter show, Kyle Doops, shared an optimistic outlook on this narrative.

In a recent post on the X (formerly Twitter) platform, he highlighted some interesting observations:

The sharp reduction in active Bitcoin addresses in 2024 indicates a pause in market activity, differing from past bear markets.

Despite price stagnation, investors are cautiously observing, influenced by external factors such as ETFs and the U.S. Blockfolio signals a future price rise.

Kyle's analysis suggests that the decline in BTC active addresses, indicating a decrease in transaction volume, could be due to investors choosing to wait and see how Bitcoin will fare, given the current uncertain economic landscape.

Bitcoin Price Forecast: $62k Breakout Could Tigger New Bull Run

Bitcoin price fell 5% within the daily timeframe on Sept 6, slipping deeper into bearish territories. The current Bollinger band and RSI technical indicators’ set-up suggest Bitcoin price could be at risk of a rapid crash towards $50,000 in the days ahead.

Bollinger Bands, a popular technical indicator, are used to gauge price volatility and potential breakout points. As of September 6, Bitcoin’s price of $53,108 has fallen below the lower Bollinger Band at $54,151. This breach of support typically signals further downside ahead, especially if other market conditions remain bearish.

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