CryptoOnchain2025-10-06

Negative Divergence Between Price and Active Addresses on the Bitcoin Network

An examination of Bitcoin’s on-chain charts reveals a negative divergence between the price and the number of active network addresses. Despite Bitcoin’s price reaching new records, the 14-day moving average of the number of active addresses is approaching its lowest level since April 2020. The number of active addresses is a critical metric for measuring user participation and genuine network growth. Traditionally, a sustainable price increase should be accompanied by a rise in network activity, as it indicates the influx of new users and organic demand. A decline in this metric while the price is rising could suggest that the recent rally is driven more by derivatives trading, financial leverage, and the activity of a small group of large players, rather than widespread public participation. This situation is considered a “warning.” If network activity fails to grow in tandem with the price, it is likely that the price lacks strong fundamental support to maintain its current levels, and the risk of a local price correction increases.