Bitcoin’s market activity has recently hit a snag, with Normalized Address Activity (NAA) plummeting to 30%, reflecting a notable shift in transactional behavior. This decrease in activity comes as Bitcoin hovers above the crucial $110,000 support level, providing a temporary reprieve for bulls. But market sentiment? It’s still edgy, with volatility fueling uncertainty.
The Cooling Effect
Axel Adler, a prominent analyst, has pointed out that Bitcoin’s NAA has nosedived from 60%—a level associated with its $124,000 all-time high—to a mere 30% today. “This sharp dip signals a cooling in transactional intensity,” Adler notes, highlighting fewer coins moving on-chain. This scenario suggests that while immediate selling pressure has eased, the market’s appetite for another rally remains in question. As explored in From Bullish to Cooldown: Bitcoin Remains in Profit-Taking Phase as Demand Fades, the current phase reflects a broader trend of profit-taking as demand wanes.
The balance between dwindling activity and the resilience of the $110,000 support is critical. If demand resurfaces, Bitcoin might stabilize. However, persistent volatility could spell deeper corrections ahead.
Long-Term Dynamics: A Different Story
In contrast to short-term trends, the long-term outlook tells a different tale. Annual NAA has climbed from 30%—a figure recorded when Bitcoin was valued at around $80,000—to 40% today. This uptick indicates a growing willingness among holders to realize profits at elevated levels, thus broadening the seller base. September 2023 marked the zenith of selling activity in this cycle, with NAA reaching 85% and Bitcoin priced at approximately $37,000. That was a period of significant distribution at lower valuations.
Adler suggests that Bitcoin is now in a “mid-stage” distribution phase, where profit-taking is increasing, yet the overarching structural trend persists. Despite this, Bitcoin’s price action reflects indecision. It remains above the $110,000 support but has yet to reclaim higher supply zones to confirm a bullish trajectory. The market is at a pivotal point, with speculation mounting about the next significant move.
Bulls’ Battle for Key Levels
Currently trading around $112,900, Bitcoin has experienced a series of volatile fluctuations, pulling back from recent highs above $123,000. Short-term momentum remains constrained by resistance levels, with BTC struggling to regain lost ground. Post-defending the $110,000 zone, buyers are attempting a rebound, but a decisive shift in sentiment hinges on surpassing critical resistance levels. As noted in Bitcoin Rebounds as Selling Pressure Fades: Analyst Sees Further Upside, the easing of selling pressure could pave the way for potential gains if key levels are breached.
Bitcoin finds itself below the 50-day and 100-day moving averages, which linger between $113,000 and $115,000. For bulls, breaking above these averages is crucial to flipping momentum in favor of an upward push. A successful retest and hold of $115,000 could spark renewed strength, paving the way for another attempt at the $120,000–$123,000 resistance zone.
However, failing to breach higher leaves BTC exposed. A rejection at current levels might trigger another test of the $110,000 support, with potential risks extending to $108,000. Market sentiment remains cautious, and the coming sessions will likely dictate Bitcoin’s ability to reclaim bullish momentum or remain under pressure.
For now, $115,000 is the critical line in the sand. As the market digests recent volatility, the next moves will be telling. Will buyers overcome expanding long-term selling pressure and steer Bitcoin toward stability and growth, or will the specter of deeper corrections loom larger? As always in the crypto world, only time will tell.
Source
This article is based on: Bitcoin Normalized Address Activity Drops To 30%: Selling Pressure Eases
Further Reading
Deepen your understanding with these related articles:
- As Bitcoin Bounces, On-Chain Data Point to Selling Pressure Near $113.6K
- Was $124K the top? Bitcoin's price peak signals tell a different story
- Bitcoin traders say BTC price at ‘make-or-break’ point at $110K
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
