Bitcoin Network Activity Index Keeps Declining: Demand Still Weak?

CryptoQuant’s Network Activity Index for Bitcoin has been locked in a downtrend, suggesting that demand for using the blockchain remains weak.

Now, here is the chart shared by Maartunn that shows how the CryptoQuant Network Activity Index has changed for Bitcoin over its history:

As displayed in the above graph, the Bitcoin Network Activity Index has been following a downward trajectory recently, a sign that transaction activity on the blockchain has been waning.

Alongside this decline, the indicator has been stuck in the region below its 365-day moving average (MA), something that tends to correspond to bearish phases.

Given that the Bitcoin Network Activity Index has continued to be in a red zone recently, it would appear that demand for using the network has remained weak. It now only remains to be seen how long it will take before the indicator observes a reversal.

As the below chart shows, the Accumulation Trend Score has been at neutral or red values across the market recently.

The orange-red levels for all Bitcoin groups indicate that investor behavior has leaned toward distribution recently. In contrast, some cohorts were participating in accumulation following the price crash in February.

At the time of writing, Bitcoin is floating around $70,900, up more than 2% over the last 24 hours.