After a sudden bearish market wave, Bitcoin seems to have lost its upward momentum as the flagship asset dropped sharply to key support levels, which could influence its price and market dynamics. Although bearish pressure has grown strong, it has not hindered Bitcoin’s network activity growth.
On-Chain Activity For Bitcoin Goes Wild
Bitcoin’s price is exhibiting bearish performance, but its network activity has shown notable growth in the past few days. A recent report from Santiment, a leading on-chain data analytics platform, reveals that the BTC blockchain is thriving this week, as on-chain activity improves.
This fresh burst of blockchain energy suggests a robust engagement and interest from users. It also reflects growing bullish conviction among long-term and new players, which may herald the start of a more active market period.
Following weeks of sluggish activity, key metrics such as newly active addresses and circulated coins have increased sharply again. According to Santiment, the recent surges in these areas are observed to be the highest daily network growth and coin circulation spikes of the year.
Data from the platform shows that over 556,8830 wallet addresses were created on May 29, marking its top level since December 2, 2023. Meanwhile, on June 2, the Bitcoin network witnessed its biggest circulation day since December 8, 2024, with 241,360 coins circulated.
Santiment highlighted that the growth in BTC’s network on-chain activity is generally positive for the flagship asset. Thus, the platform contends that the development is crucial to monitor closely as the broader crypto market ranges.
These spikes coincided with bearish pressure, causing BTC to hover just below the $105,000 price mark. However, the flagship asset has now lost this level completely, triggering a continuation of the current downward trend to the next critical price points.
While BTC’s price has fallen sharply below the level, Ali Martinez, a crypto and on-chain analyst, has pointed out two key zones at $103,250 and $101,000 acting as crucial areas of support. Presently, Bitcoin has dropped close to the $103,250 zone, leaving $101,000 as the next strong area of support to watch out for.
BTC Major Investors Exhibiting Bullish Sentiment
Even though BTC has declined alongside a waning market action, bullish sentiment is starting to return among the largest investors. Glassnode, an on-chain data and financial platform, reported this shift in big investor behavior, indicating renewed interest in BTC.
The platform highlighted that the largest investors, those holding 10,000 BTC and more, are making a comeback in the accumulation game after briefly leaning toward distribution. Such growing buying pressure among these whales implies institutional confidence in Bitcoin’s long-term prospects.
Data shows that all wallet cohorts exhibit different levels of buying, with the strongest activity spotted among the 10–100 BTC and <1 BTC groups. BTC’s trend accumulation score reveals that these cohorts have a score of 1.0, which is the highest possible level.
Featured image from Getty Images, chart from Tradingview.com
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