Daily Active Bitcoin Addresses Hit Yearly Peak, Cross 1M as BTC Breaks $41K

Daily active addresses on the Bitcoin network have recently hit a new yearly peak above the 1 million mark, as BTC finally breaks above the $41,000 threshold.

Ali Martinez, a renowned market analyst, highlighted the recent development, citing data from market analytical resource Santiment. According to Ali, the latest figure represents a remarkable surge in the metric, which has remained below 1 million for most of the month.

Bitcoin Daily Active Addresses Cross 1M

Data from Santiment confirms that the daily active addresses on the Bitcoin network hit a high of 1.1 million yesterday. This represents the highest number of active addresses on Bitcoin in a 24-hour span, marking a 23.6% increase from the 889,870 addresses recorded the previous day.

Notably, the last time daily active addresses on the Bitcoin network crossed the 1 million mark was on Jan. 4, shortly after the BTC crash of Jan. 3 that saw the asset hit $40,000 for the first time this year. Bitcoin slumped to a low of $40,750 that day.

Interestingly, the Bitcoin blockchain saw a high of 1.01 million active addresses the day after, signaling increased interest from network participants. Since then, the daily active addresses had remained below 1 million until the latest upsurge.

This indicates a higher number of unique addresses interacting with the Bitcoin network on a daily basis. It could be a sign of renewed interest, adoption, and overall activity within the Bitcoin ecosystem.

Mixed Signals

Complementing this metric is a massive rate of BTC outflows from crypto exchanges, according to data from CryptoQuant’s BTC Exchange Netflow. While this is a positive development, the Binary CDD metric suggests long-term holders have continued to move their tokens.

The Exchange Netflow and Binary CDD metrics are some of the factors contributing to a rapid surge in daily active Bitcoin addresses. Both metrics indicate an increase in Bitcoin activity.

However, they send mixed signals in the market, as an increase in exchange outflows suggest reduced selling pressure, while a high long-term holders’ movement signals increased selling pressure on long-term investors.

BTC Breaks Above $41,000

The latest surge in address activity comes amid Bitcoin’s recent break above the $41,000 mark for the first time since Jan. 22. The asset briefly dropped below this psychological support yesterday, closing the day at $39,961 amid a meager 0.31% intraday drop.

Veteran trader Michaël van de Poppe pointed out that Bitcoin had continued to hover around the range low between $38,000 and $40,000 that he identified on the 3-day chart. 

Nonetheless, he stressed that, as BTC trades in this price range, altcoins have started seeing a resurgence. Citing these conditions, the market analyst asserted that the market is gradually slipping into the last phase of the ongoing retracement. He noted this in an earlier report.

Meanwhile, prominent chartist EGRAG highlighted an earlier analysis he made on BTC last week. Bitcoin was trading between $41,700 and $43,000 then. However, the analyst set up a retracement target below the $40,000 mark. Bitcoin recently hit this target.

#BTC Double Wave – 2025 Cycle Top:

Remember the insightful post from January 2023? Dive into the details of how #BTC played out to perfection( https://t.co/QjZyagfvQX)

? Analyzing the Future: What's Next?
Now that Target 1 has been hit precisely, let's delve into my thesis.… pic.twitter.com/n1a0tRyFA5

— EGRAG CRYPTO (@egragcrypto) January 26, 2024

EGRAG’s latest analysis predicts the imminent formation of a Gravestone Doji or a Shooting Star structure on the monthly chart. Should this structure surface, Bitcoin could face further retracement. At this stage, only a surge to $45,000 would invalidate the structure.

However, if the structure materializes, EGRAG believes BTC could face a normal retracement to the $34,000 to $35,000 range or a critical retracement to a price threshold between $30,000 and $32,000. 

He then pointed out the possibility of an “ugly retracement,” which would take Bitcoin to the range of $26,000 to $28,000. The analyst believes a monthly close between $24,800 would cancel the bull run, and potentially lead to a collapse below $10,000. BTC currently trades for $41,257.