Bitcoin price drops below $70,000 after Iran truce buzz, Network Activity weakens

• Bitcoin price falls below $70,000 as network activity weakens.
• Declining transactions and addresses signal lower demand.
• Key support is at $69,400, while resistance stands near $71,600.

Bitcoin price today hit a daily low of $69,914.54 after soaring above $71,000 at the start of the week, following news of a truce proposal to Iran by US President Donald Trump.

The sudden pullback has pushed Bitcoin back below the $70,000 level, a psychological zone that traders often watch closely for signs of strength or weakness.

This decline did not happen in isolation, as the underlying data suggests that the broader network is also losing momentum.

Bitcoin Network Activity signals weakening demand

Recent on-chain data shows that Bitcoin’s Network Activity Index continues to trend downward, pointing to a steady cooling in user participation.

This index tracks a combination of key metrics that together reveal how actively the network is being used daily.

Among these metrics are active addresses, which measure how many unique participants are sending or receiving Bitcoin.

A decline in active addresses often signals reduced interest or engagement from both retail users and larger players.

Transaction counts have also softened, indicating that fewer transfers are taking place across the network.

This drop in transaction activity suggests that demand for block space is easing, which usually aligns with quieter market conditions.

Another important indicator, the UTXO count, reflects how coins are being distributed and reused, and its slowdown points to less frequent movement of funds.

Block data, including the number of bytes per block, further confirms that network usage is not as intense as it was during more active periods.

On-chain activity is still cooling off 📉

Bitcoin’s CryptoQuant Network Activity Index keeps declining, pointing to weaker demand across the network.

Key indicators tracked:
• Active addresses (sending + receiving)
• Transactions (total & per block)
• UTXO count
• Bytes per… pic.twitter.com/U4aSKjz2Pk

— Maartunn (@JA_Maartun) March 24, 2026

Taken together, these signals paint a clear picture of declining demand rather than temporary disruption.

The BTC price struggles mirror on-chain weakness

The recent dip below $70,000 appears to be more than just a reaction to short-term news or macro headlines.

Instead, it reflects a broader lack of strong buying pressure needed to sustain higher price levels.

Even though Bitcoin managed to climb earlier in the week, the rally lacked the support of rising network activity.

This disconnect between price and usage often leads to corrections, as the market struggles to justify higher valuations.

Short-term performance data also shows mild losses across multiple timeframes, reinforcing the idea that momentum is fading.

While the market has not entered a sharp sell-off, the gradual decline suggests a slow shift in sentiment.

Investors seem to be taking a more cautious approach, with fewer participants actively entering the market.

At the sam