Bitcoin On-Chain Metrics Surge, Price Stalls Below $105K: What Comes Next?

2 days ago 8

TLDR:

Bitcoin saw 556,830 new wallets on May 29, the most since December 2023.
Over 241,000 BTC circulated on June 2, the highest since December 2024.
Altcoins fell over 10% last week while Bitcoin dropped just 3%.
BTC forms a descending triangle, signaling short-term caution and long-term potential.

Bitcoin’s network activity has accelerated in recent days, even as the BTC price continues to struggle below the $105,000 mark. Market watchers are closely tracking both wallet creation and circulation metrics, which have posted multi-month highs.

Despite this uptick, Bitcoin remains in a consolidation phase, unable to break above key resistance. Altcoins have also weakened, showing no clear leadership or sector-based rallies. This cautious environment has prompted analysts to anticipate near-term volatility while eyeing long-term bullish potential.

Surge in Wallets and Circulation Suggests Strengthening Fundamentals

Santiment reported sharp increases in Bitcoin’s on-chain engagement during the final days of May and early June. On May 29, 556,830 new wallets were created, the most since December 2023. On June 2, over 241,000 BTC circulated across the network, a peak not seen since December 2024.

📊 Bitcoin's on-chain activity has seen sharp rises this week as its price hovers just below $105K:

📈 May 29th: 556,830 new $BTC wallets created (Highest since December 2, 2023)

🔄 June 2nd: 241,360 coins circulated (Highest since December 8, 2024)

Growth in a network's… pic.twitter.com/2DxknVXrKT

— Santiment (@santimentfeed) June 5, 2025

These data points point to growing user activity and potential demand. Earlier in April 2025, Santiment also noted a 2.6% rise in whale wallets holding between 1,000 to 10,000 BTC. Analysts suggest that these trends indicate underlying support for Bitcoin, even if short-term prices remain range-bound.

While Bitcoin has traded relatively flat over the past week, many altcoins have posted larger losses. According to trader Daan Crypto Trades, altcoins saw sharp declines last week, with some dropping over 10%. In contrast, BTC only slipped a few percentage points.

This performance gap reflects a weak altcoin environment. Daan advised against active trading in such conditions, citing the lack of consistent narratives or outperforming sectors. The sentiment reflects broader caution across the crypto space, with traders holding off until clear sector-wide movements emerge.

Chart Patterns Hint at Mixed Outlook for Bitcoin Price

Technical signals offer a split view of Bitcoin’s price direction in the near term. Analyst Jackis pointed to a potential short-term drop, citing a descending triangle formation on Bitcoin’s chart. He noted historical support zones around €65,000 that could serve as a base.

There are very strong chances that #Bitcoin will be trading lower later this week & next

And at the same time even higher chances that it will be trading much higher after summer ✍️

Are you ok with those chances? Do they fit your bias or contradict it? pic.twitter.com/EjJpw25Cql

— JACKIS (@i_am_jackis) June 4, 2025

Despite the bearish setup, he expressed higher confidence in a post-summer rally. Community discussions have also mentioned a bearish RSI trend across major coins, often seen before a rotation into altcoins. If BTC loses momentum, its dominance could face pressure, but that shift is not yet confirmed.

Bitcoin’s current price stands at $104,638, according to CoinGecko, down 0.80% in the last 24 hours. Over the past seven days, the BTC price has fallen by 3.14%. Trading volume remains high, topping $24 billion, suggesting active market participation despite the stall.

As Bitcoin hovers below $105,000, attention now shifts to whether growing on-chain activity will translate into upward price action. Analysts remain cautious but are watching for signals of renewed momentum as summer approaches.