Bitcoin [BTC] Dips 4% From Its $97k High

Calling for a $100k target while Bitcoin [BTC] just dipped 4% from its $97k high in only three days might sound a bit ambitious.

Bitcoin price has encountered a setback in its rally, sliding 4% from its three-day high of $97k.

However, on-chain data from Glassnode reveals that Bitcoin network activity recently hit its highest point in six months.

On April 30, 925,914 active addresses participated in the Bitcoin network in a single day, a level not seen since December 2023.

At the time, BTC was trading at around $96,951.

However, the massive network activity did not lead to a strong rally in the cryptocurrency. In fact, BTC price fell nearly 2% the very next day.

This pattern is similar to the one observed in early March, when active addresses spiked to 860k on the 7th of March, the highest in a week, only for BTC to retrace 7% as active addresses declined shortly after.Image: BTC price action vs active addresses (last 3 months)

This price-action behavior showcases a bearish divergence between on-chain activity and price movement.

Furthermore, AMBCrypto's analysis of on-chain data on the same day the active address count surged, revealed that approximately 5,000 BTC, valued at around $484 million, flowed into derivative exchanges.

This inflow signals speculative positioning rather than genuine spot BTC demand.

So, instead of long-term holders stacking up, the market could be witnessing leverage-driven selling, which likely caused the price dip.

Is Bitcoin running out of FOMO as active addresses plunge?

The last time Bitcoin experienced significant spot demand was on April 29, when net outflows across all exchanges spiked while BTC was priced at $94,280.

Since then, although the price has touched key resistance levels, net flows have remained largely flat, suggesting a lack of substantial buying or selling pressure from major traders.

This could be a sign of bullish fatigue as retail traders are taking a step back from the market.Image: Bitcoin net exchange outflows vs price action (last 3 months)

After reaching a six-month peak on May 2, Bitcoin's active addresses sharply declined to a two-week low of 618k the day after.

This drop reflected a clear hesitation among traders to engage in spot buying near the $97k level. Hence, signaling waning participation and reluctance to accumulate BTC at elevated valuations.

In this context, the $100k price target appears increasingly unrealistic.