Bitcoin Drops 2.06% Below $94,000, Active Addresses Surge

Bitcoin's price has experienced a notable decline, dropping below the $94,000 mark. The cryptocurrency is currently trading at approximately $93,949.99, reflecting a 2.06% decrease over the past 24 hours. This drop comes after a period of volatility, where Bitcoin had previously surged past $94,000, reigniting debates about its status as a safe haven asset. The recent price movement has led to a surge in activity on the Bitcoin blockchain, with a significant increase in active addresses. Analysts have noted that the number of active addresses reached a six-month high, indicating heightened engagement within the Bitcoin network. This surge in activity coincides with Bitcoin's recent price movements, particularly its reclaim of the $95,000 price range.

However, the situation remains uncertain. Some analysts predict that if Bitcoin drops back into the old range below $94,000, the market could turn bearish. The current structure favors the bulls, but there are risks ahead, including a possible short-term bearish setup based on technical analysis. The fair value gap is currently sitting between $97,000 and $97,450, and if the price fails to break through this supply region, it could reverse and catch bulls off guard. Despite the recent decline, sentiment remains bullish, with many analysts still optimistic about Bitcoin's potential to reach $100,000. The road to $100,000 is structurally intact if buyers defend the new fair value gap, but the situation could turn bearish if Bitcoin drops back into the old range below $94,000.