Santiment Predicts More Pain for Bitcoin as Active Addresses Plunge

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Santiment cautioned Bitcoin bulls about the cryptocurrency’s downside prospects in its latest on-chain analysis. The crypto-focused sentimental analysis platform highlighted a steep decline in the number of daily active addresses (DAA) on the Bitcoin network. The data reflected that there are now fewer wallets that send or receive Bitcoin on a day-to-day basis. Santiment asserts that DAA correlates strongly with the asset’s price action. “For example, throughout Q1 of 2019, the DAA were steadily growing way before the market started to recover,” the portal wrote in DAA’s introductary note. “Same holds true for July 2019, when a decline in DAA preceded a decline in price.” Bitcoin DAA and Price Divergence chart from Santiment hints a bearish correction The pattern hinted at repeating in August 2020, it noted. The DAA readings returned two ten percent-long red bars – like the ones seen before the March 2020 crash. They prompted Santiment to…

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