has shot back up past the $80,000 mark and even reached the $81,000 level for the first time in three months. Even though the market seems to be going bullish, the on-chain data is saying the opposite. On-chain activity has fallen to a 2-year low.

Bitcoin Experiences Weak Network Activity

Recently, Santiment made an X post saying that Bitcoin’s recent price increase is happening side by side with a decrease in network activity. Daily active wallets dropped to about 531,000, while new wallets dropped to around 203,000. Both of these levels are at the lowest number recorded over the past 2 years.

Santiment Data

Most of the time a price increase happens with a surge in activity on the network, higher number of transactions and new user adoption. This is not currently the case for Bitcoin. Santiment said this is a problem since it may indicate that the BTC rally is driven by a small group of people.

In other words, the BTC price could drop more quickly if buying pressure slows down by this small group. On the other hand, the low on-chain activity should not be seen as strong evidence for price decreases. Santiment also pointed out that the BTC price could skyrocket once retail interest picks up and daily active addresses reach the 100K+ new wallets mark again.

The Price of BTC Goes on an Uptrend

The price of BTC has been on the rise lately as it surged from $76,680 to more than $80,000 in the last week, as per CoinMarketCap. At one point, it even soared to the $81,000 level before falling again. It is also worth mentioning that Strategy made no BTC purchase in the past week. The BTC price rally still going strong without this titan purchasing it is quite impressive.Bitcoin Chart

The key short-term barrier that the price of BTC needs to go past is the $81,200 level. If it manages to do that, it could even go to the $83,000 level, which is its 200-day moving average. In the long term, the extreme resistance level sits at $85,000. On the other hand, the major support level sits at $79,600, followed by $78,900.

Technical Indicators Show a Bullish Trend

When it comes to the technical analysis of Bitcoin, it also shows some bullish signs. For example, the 14-day RSI indicator now has a value of 65 as per Investing.com. This indicates that the price of BTC is experiencing a bullish uptrend, which is gaining strength but still not in the overbought area (over 70).

Not only that, the MACD (12,26) indicator has a value of 409, which is also in the buy zone. This shows that the 12-day EMA is rising faster than the 26-day EMA. All these factors show that bulls are still in control and are pushing the price of BTC up in the short term.

A Look at the Bigger Picture

The current Bitcoin setup is a larger phenomenon in the whole market: price movement sometimes is better than fundamentals. However, long-term growth typically needs both of these elements combined. The price of a crypto is almost always tied to network activity, as it shows both adoption and demand. This is something traders are betting on and looking for. Therefore, a return of network activity is key to BTC sustaining this bullish momentum.