2018 Similarity on the Bitcoin Network: Critical Data Suggests Price May Have Bottomed Out

The number of active addresses on the Bitcoin (BTC) network has dropped to levels seen during the 2018-2019 bear market period, providing a significant signal that the price may have bottomed out.

While the cryptocurrency markets continue to search for direction, Bitcoin network data presents a critical picture for investors. According to data shared by CryptoQuant, active addresses—representing the number of unique addresses transacting on the network daily—have reached historic lows once again after years. This situation shows similarities with past major market cycles, suggesting that the price might be in a bottom formation.

The 30 and 100-day exponential moving averages (EMA), used in analyses to balance daily fluctuations, experienced a notable decline as of July. While the 30-day average fell to 609,688, these figures are quite close to the July 2018 levels of 570,710. Similar network activity was recorded in the past when the Bitcoin price hit its bottom at $3,206.

Has the Bitcoin Price Bottom Already Been Reached?

Looking at current data, the $58,535 level seen on June 30 remains the periodic bottom for now. Following the decline in network activity, the fact that both the 30-day and 100-day averages are rising again is interpreted as a sign of recovery in the market. As of August, the 30-day average has risen to 664,764, indicating increased vitality on the network.

Experts state that this data is not a standalone buy signal but supports the price bottoming process. If the Bitcoin price continues to stay above $58,535 and network activity does not drop below the July lows, the recovery process will remain valid. However, a drop below these levels could technically invalidate the current positive scenario.