Bitcoin Down 6% Amid Active Addresses Hitting Five-Year Low

• Bitcoin price declined 6% in the past 7 days, trading at $65,516.
• RSI and EMA of BTC are signaling selling pressure.

Bitcoin (BTC), the largest cryptocurrency by market cap, has observed a decline in its active address count, as per the data from Glassnode. Usually, a decline in the active addresses is found during a surge in the Bitcoin transaction fees.

Moreover, the network activity of Bitcoin has reached its lowest in five years, dropping significantly. The entire market sentiment has been wary as Bitcoin’s price fluctuates between $69K-$65K. The regulatory issues and the shift in investor focus might be contributing to the reduced activity. Additionally, economic conditions and market sentiment had a major influence.

Bitcoin price wiped nearly 5% of its value in the past week. It is trading at $65,516 at the time of writing with a decline above 1.48%. However, the trading volume is up by 55.35% at $19.81 billion. Over the past week, it was down by 5.56%. On June 7, the BTC price hit above $71K.

BTC price chart (Source: TradindView)

Will The BTC Bulls Recover Shortly?

Despite crossing the resistance, the price dropped down to the level of $65K. And, Bitcoin’s daily Relative Strength Index (RSI) stands at 41.54, heading toward the neutral zone. Moreover, the EMA signals the selling pressure.

After analyzing the price momentum of BTC, If the bulls aid the price to remain above $67K and continue to increase, the initial resistance could be at the $68,320 level, if the bullish trend persists, the next key resistance is to be found at $69,856. A further surge will take the price towards the $71,000 range.

In contrast, if the bulls fail to lead and the bears take up the price, it may dip to the $64,125 support zone. If It continues to dip, the immediate key support will be in between the $63K-62K range. The further drop might take the price toward the $61,067 level.

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