The latest data shows that Bitcoin (BTC) has been repeating the price action from May with its most recent decline.
Given the 6% price drop on the BTC/USD pair, the analysis argues that its journey to $25,000 was never supposed to last.
Checked price is back to haunt the BTC chart
After surprising some with its scale, the recent sudden losses of BTC price action are still going on.
After dropping from $23,800 to $21,400 in one hour, the largest cryptocurrency is now trying to establish support near its real price.
At just under $22,000, the realized price indicates the total amount at which the entire Bitcoin supply moved last.
The setup will be familiar to many market participants, as the realized price formed an initial support line during bitcoin’s plunge in May, right after the Terra (LUNA) – now renamed Terra Classic (LUNC) explosion.
Check bitcoin price chart. Source: Glassnode
With history rhyming – at least on the chart – it remains to be seen whether other recent points of interest will continue to play their part.
Among them is the 200-week moving average (MA), a hard-earned support level in July that now appears to have lost in one fell swoop.
The 50-day moving average, which was cleared in late July, is now also back above the spot at $22,260.
Entering Wall Street, US stock futures showed that more downsides are to come, which means more pressure on the crypto markets.
Active addresses failed to support the hack
Meanwhile, a look at the network’s activity growth during August to more than $25,000 yielded negative conclusions from analyst Philip Swift.
Related: Bitcoin Vitality Lows Since 2021 Amid New 5-Year BTC Hodl Record
In a new tweet of the day, the creator of analytics resource Look Into Bitcoin notes that address growth hasn’t matched similar price spikes this time around.
He summarized, “AASI (Active Address Sentiment Index) indicates that the current price action is not supported by a sufficient increase in active addresses on the Bitcoin network.”
“Experienced local hikes when this happened previously.”
Illustrative chart of Bitcoin AASI (Active Address Sentiment Index). Source: Philip Swift / Twitter
This comes despite the total number of Bitcoin addresses created to cross one billion this week, according to data from on-chain analytics firm Glassnode.