CryptoOnchain
Negative Divergence Between Bitcoin Price and Active Addresses
The chart illustrates a clear negative divergence between Bitcoin’s price and the 14-day moving average of active addresses. While Bitcoin’s price has been making higher highs in recent months, the number of active addresses has been trending downward or failing to break previous highs. This signals a decline in network activity and user engagement behind the price rally. Such divergence often acts as an early warning that the bullish trend may be losing momentum, increasing the risk of a price correction. If the drop in active addresses continues, demand could weaken and selling pressure may intensify in the near term.