According to Santiment, bitcoin didn't see much momentum in January as token circulation and address activity remain in decline since the start of 2022. The on-chain analytics firm points out that a rise in these indicators could also signal a price reversal for bitcoin . Bitcoin resumed its decline after reaching highs of $ 47,967 on January 1. Several days of decline drove bitcoin to lows of $ 39,950 on January 10 as investor sentiment has soured. The Crypto Fear and Greed index has moved to "extreme fear" and panic reigns in the market. Although the price of bitcoin has recovered slightly, being currently trading at $ 41,883, the apparent indecision of the market still weighs on the price action.
On what could happen next for the price of Bitcoin, a leading cryptocurrency analyst argues that "if the $ 40,600 level holds, the upward trend at $ 42,600 and potentially $ 46,000 should be within reach". According to IntoTheBlock's analysis, the growth of the Bitcoin network remains in negative territory. The net network growth indicated by IntoTheBlock provides insight into both user engagement and growth. The DAA (Daily Active Addresses) indicator keeps track of the number of new addresses, total active addresses and zero-balance addresses. Daily Active Addresses (DAAs) are a useful way to monitor network activity over time, as growing DAAs report increased use of the blockchain. Therefore, DAAs can often be a leading indicator of price action: the demand for network usage could increase the demand for the blockchain's native token.