Bitcoin (CRYPTO: BTC) trades around $66,000, but on-chain data suggests the broader crypto market may not be “dead,” though warning signs are emerging.
Is Crypto Dead? On Chain Metrics Say Not Yet
According to data from Santiment, Bitcoin’s network activity has declined significantly since February 2021: 42% fewer unique addresses transacting and 47% fewer new addresses being created.
While this does not confirm a multi-year bear market, it reveals a notable bearish divergence: Bitcoin’s market capitalization reached new highs in 2025 even as underlying network participation weakened.
For a sustainable long-term relief rally, analysts suggest key metrics, such as active addresses, new address growth and transaction activity would need to rise again.
Altcoins remain partially dependent on Bitcoin’s network strength. However, individual tokens could still rally if their own ecosystem activity improves.
What Bitcoin Price Action Is Doing
Daan Crypto Trades noted liquidity is forming above and below current prices, though no dominant cluster has emerged yet.
$66,000 → Key short-term support (held for two weeks) $71,000 → Major resistance capping upside attempts
Price action remains range bound. A decisive weekly break above $71,000 or below $66,000 could determine the next significant directional move.
Analyst More Crypto Online highlighted that Bitcoin is holding just above important support at $65,060, keeping a short-term bullish scenario alive. A breakout above channel resistance could trigger upside momentum. However, momentum remains weak and structure appears corrective.
A breakdown below $65,060 would shift focus toward deeper downside levels at $64,558-$62,604.
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