CryptoOnchain2026-01-31

On-Chain Alert: Active Addresses Plunge to 2020 Lows Following $83K Support Breakdown

Metric: Bitcoin: Active Addresses (SMA 7) Critical State: A Return to the Past Bitcoin’s on-chain data is painting a concerning picture. The 7-day Simple Moving Average (SMA) of Active Addresses has plummeted to 720,000. This marks the lowest level of network activity recorded since April 2020. To put this decline into perspective, this metric stood at a robust 1.126 million addresses in November 2024. Price vs. Network Correlation Analysis This sharp deterioration in network fundamentals coincides with Bitcoin losing the critical $83,000 support level, with the price currently hovering around $77,000. Deep Bearish Divergence: While Bitcoin’s price remains significantly higher than it was in April 2020, network activity has reverted to those historical lows. This massive divergence between high valuation and low utilization suggests that the current price levels lack strong fundamental support from actual network users. Market Exodus: The ~36% decline in active addresses from the November 2024 highs signals a substantial exit of retail participants and a general lack of interest in the market throughout late 2025 and early 2026. Conclusion: The loss of the $83,000 support, unaccompanied by network growth, amplifies the risk of further downside. Until the downtrend in active addresses reverses and we witness a renewed influx of users on-chain, any price recovery attempts may prove unstable or result in “bull traps.”