- Bitcoin’s network activity dropped 25% below trend in 2025.
- A 30% decline in network activity often leads to price drops.
- Bitcoin price may reverse if network activity rises above trend.
Over the years, price has shown possibilities of upward trends when the network activity has gone considerably above the level of activity trend, which is in green color. This was conspicuous in 2017 and 2021, when activity peaks coincided with the price of Bitcoin touching new all-time highs. These spikes indicate bull markets, where activity above the trend means bullish conditions.
However, recent information suggests a shift. As of early 2025, Bitcoin’s network activity dropped significantly below trend bar, indicating bearish activity (the red bars). This recent inactivity in network activity coincides with the fall in value of Bitcoin, signifying a continuation of the bear market. The working style here is not new, for there were also instances in the past of network activity declining, followed by price falls in 2018 and 2022.
Bearish Signals: Network Activity Below Trend
Currently, Bitcoin’s trend exists below that trend, and thus, it is a bearish phase. From the late month of 2023 until 2025, a strong negative deviation away from the trend has heralded declining network activity, with fewer transactions and less user engagement on the network these days. In the past, such trends have led to protracted bear markets of 2018 and 2022.
Price activity has proceeded along Bitcoin’s path during such inactivity periods. In the bear market of 2018, Bitcoin’s network activity participated in an extensive period well below the trend, where its price plumaged from just above $19,000 down to just below $4,000. Once again, in 2022, with reduced network activity, the price for Bitcoin saw a significant drop-off from $47,000 all the way down to $15,000.
The Green Zones: Indicators of Market Bullishness
Green bars demonstrate periods when network activity was significant enough to usually generate price surges. In 2017, Bitcoin, moving from close to $1,000 to about $20,000, rallied as network activity boomed. Such network activity suggests, firstly, that Bitcoin was widely adopted, thus generating higher trading volume and network engagement in support of the price rally.
The same trend occurred in 2021 when it peaked well above the trend when Bitcoin’s price was rising and simultaneously getting billion dollars above the mark dwell through the trend activity. These active periods of network activity stand for some investor excitement, more adoption leading to higher use cases for Bitcoin, which directly mean price rises.
What Lies Ahead?
Bitcoin network activity below trend remains; hence, sales pressure may continue. Recently, the price has gone down into the lower region of, say, $80,000, and the rest now just depends upon the trend-activity network to prove divergent for more further price declines. Otherwise, a return of network activity above its trend level now could signal bullish possibilities.
