Bitcoin Price Drops Below $70,000 After Iran Peace Struggle, Network Activity Weak
As network activity weakened, the price of Bitcoin fell below $70,000. Declining transactions and addresses indicate low demand. Key support is at $69,400, while resistance is near $71,600.
Bitcoin price hit an intraday low of $69,914.54 today after rallying more than $71,000 earlier in the week following US President Donald Trump's proposal of reconciliation with Iran.
The sudden reversal has pushed Bitcoin back below $70,000, a psychological zone that traders keep a close eye on for signs of strength or weakness.
The underlying data suggests that the wider network is losing speed, but this decline did not occur in isolation.
Bitcoin network activity is a sign of weakening demand.
On-chain data shows that the Bitcoin Network Activity Index continues to trend downward, reflecting a steady slowdown in user engagement.
This index tracks a combination of key metrics that show how actively the network is being used on a daily basis.
Among these metrics are active addresses, which measure how many unique participants are sending or receiving Bitcoin.
A decline in active addresses often indicates a decline in interest or participation from retail users and large players.
Transaction counts are also recorded, indicating that few transfers are taking place in the network.
This decline in trading activity indicates that demand for block space is easing, which usually coincides with quieter market conditions.
Another important indicator is that the UTXO count reflects how coins are being distributed and recycled, and a slowdown indicates less frequent currency movement.
Block data, including the number of bytes per block, further confirms that network usage is not as strong as it was during more active periods.
The movement on the chain is still slowing down 📉
Bitcoin's CryptoQuant Network Activity Index continues to decline, indicating weak interest in the network.
Key indicators tracked: • Active addresses (send + receive) • Transactions (total and per block) • UTXO count • Bytes per… pic.twitter.com/U4aSKjz2Pk
— Maartun (@JA_Maartun) March 24, 2026
Together, these signs paint a clearer picture of a decline in demand than a temporary disruption.
BTC price fights weakness on the chain
The recent decline below $70,000 appears to be more than just a response to short-term news or macro headlines.
Rather, it reflects a lack of the strong buying pressure needed to sustain higher price levels.
Although Bitcoin was able to climb at the beginning of the week, the rally was not supported by the increasing activity of the network.
This relationship between price and usage often leads to a correction, as the market struggles to justify higher valuations.
Short-term performance data shows modest losses across multiple timeframes, reinforcing the idea that momentum is fading.
While the market hasn't gone into a major selloff, the gradual decline reflects a gradual shift in sentiment.
Investors seem to be taking a more cautious approach, with fewer participants actively entering the market.
At the same time, existing holders were less willing to move their coins, which contributed to the decline in trading activity.
Key Bitcoin price levels to watch in the coming days
Bitcoin is now approaching a critical zone where price action in the coming days could define its short-term direction.
In particular, most technical indicators are leaning bearish, with Bitcoin trading below major descriptive moving averages on the daily chart.
This position suggests that the broader trend will remain under pressure unless the price is able to recover key moving averages.
The most important level to watch at the moment is $69,423, which now serves as immediate support for the market.
If this support holds, it could allow Bitcoin to gain strength and push towards the first major resistance at $71,645.
If buyers can break above $71,645, momentum could build to the next resistance level at $73,687.
A strong rally could open the door to a test of $75,930, which is the third key resistance level in the current structure.
Failure to hold above $69,423 will weaken the current structure and expose Bitcoin to further losses.
In that case, analysts note that the next support would be $67,167.
News to watch
From a macro perspective, traders should keep a close eye on upcoming inflation data, especially the PCE print expected early next month.
A soft reading below 2.8% could support riskier assets and give Bitcoin a chance to recover.
On the other hand, a higher than expected figure of 3% can increase pressure and lower the price.
