The onchain analytics platform CryptoQuant has warned of potential weakness in the Bitcoin (BTC) price. The platform's Quicktake blog post on September 4th highlighted several concerning trends in the Bitcoin network activity.

At their peak in mid-March, around the time BTC/USD set its most recent all-time high, daily active addresses numbered nearly 1.2 million.

However, that number has now dropped to just 838,000, with a recent low in late August of just 744,000. This marks the lowest active daily tally since 2021.

CryptoQuant contributor Gaah noted, "The total number of active addresses on the Bitcoin network hit new lows in 2024, reaching the same level as 3 years ago, when the price of BTC was quoted at around $45,000."

This decline in active addresses indicates less overall activity on the Bitcoin network, with fewer transactions taking place, which may reflect a loss of interest in using the network at this point in the market.

The data also suggests that the Bitcoin market is currently in a period of "chopsolidation," a term coined by the pseudonymous creator of the onchain analytics platform Checkonchain. This refers to a consolidation phase with erratic or "choppy" BTC price moves within a narrow range.

The analytics community sees this as a potential sign that the price range is becoming "unstable" and that the market is ready to move somewhere else.

Checkmate noted that the swings are getting larger and more sustained, which "screams" to him that a breakout is brewing.