Bitcoin Price Holds Above $102,000 Despite Low User Engagement

Bitcoin's price has been holding steady above $102,000, with support at $101,269 and resistance at $103,982. Despite this price strength, the number of active Bitcoin addresses remains significantly lower than the peaks observed in 2017 and 2021, indicating a lack of user engagement and retail-driven momentum.

Historically, significant price peaks have been accompanied by spikes in active addresses, as seen in late 2017 and late 2021. During these periods, daily active addresses approached 1.3 million. However, the current activity levels are well below this threshold, suggesting a more cautious sentiment among users compared to previous bullish cycles.

On-chain activity data shows reduced volatility, with active addresses fluctuating within a narrower range over the past year. This consistency in activity implies that there has been no significant influx of new users or speculative trading. The price has been consolidating within a narrow band of support and resistance, further emphasizing the lack of retail-driven momentum.

The subdued on-chain activity persists despite the Bitcoin price remaining above $100,000. This disconnect between market value and network usage raises questions about the current phase of Bitcoin's trajectory. While the price continues to trade in six-figure territory, engagement on the network remains restrained, with active addresses hovering near long-term averages rather than historical extremes.

In summary, while Bitcoin's price holds above $102,000, the lack of corresponding increases in active addresses and on-chain activity suggests a more subdued market environment. The current phase appears to be characterized by cautious sentiment and reduced retail participation, contrasting with the euphoria and high user engagement observed during previous price peaks.