On-chain data shows Bitcoin network metrics have diverged recently, with active addresses falling even as transaction volume shoots up.
Now, here is a chart that shows the trend in the Bitcoin Active Address Count over the last couple of years:
With the price decline that has followed the peak, however, the indicator’s value has plummeted. The metric is currently sitting at 692,000, which is down 2.2% compared to last week. This value is also below the 712,000 low statistical band, indicating that trader attention in the cryptocurrency has taken an especially big hit.
While the Active Address Count has plunged, another metric, the On-Chain Transfer Volume, has gone up instead.
From the chart, it’s visible that the Bitcoin On-Chain Transfer Volume saw an uptick alongside the ATH break this month, but instead of cooling off with the price, the metric has only climbed higher since then.
The indicator has surged by 7.8% to $10.3 billion, which is above the high statistical band of $10.15 billion. But one question arises: if the number of users taking part in transfer activity has gone down as suggested by the trend in the Active Address Count, why has the On-Chain Transfer Volume gone up?
The divergence that has cropped up between the two Bitcoin indicators could signal that retail speculation has become muted after the price decline, while whales have ramped up activity to reposition themselves.
Bearish momentum has continued for Bitcoin during the last 24 hours as its price has slipped to $109,900.
