- Bitcoin active addresses dropped 39.80% during consolidation, signaling weaker short-term trading activity across the network.
- Analyst Ali Charts identified $78,258 resistance and $75,733 support as Bitcoin’s critical breakout decision zone.
- Derivatives traders increased bullish positioning while large holders redistributed more than 18,447 BTC near resistance.
Bitcoin traded near a critical resistance range in May 2026 as network activity declined, according to analyst Ali Charts. Active Bitcoin addresses dropped 39.80% over two weeks, falling from 821,000 to 494,000 during the ongoing consolidation phase. Meanwhile, derivatives positioning increased while large holders redistributed more than 18,447 BTC across the current trading range.
Network Activity Drops During BTC Consolidation
According to Ali Charts, reduced network activity reflected fading short-term speculation during Bitcoin’s sideways movement. He said the decline suggested casual traders had stepped back while longer-term holders maintained control of circulating supply.
Ali Charts also identified two major price levels shaping Bitcoin’s next move. Resistance remained near $78,258, while support stood around $75,733 during the consolidation period.
Notably, he said a breakout above resistance could push Bitcoin toward $84,569. However, a breakdown below support could expose BTC to downside pressure near $66,898.
The analyst added that Bitcoin continued moving inside structured trading channels during the market reset. According to Ali Charts, the range allowed liquidity to build before a larger directional move.
Derivatives Positioning Climbs Near Resistance
As Bitcoin tested the upper boundary of the channel, derivatives traders increased bullish positioning. Ali Charts said funding rates climbed to 0.4%, marking their highest level in more than two months.
Meanwhile, onchain data showed larger entities actively rebalancing portfolios within the tight trading range. According to Ali Charts, those entities redistributed over 18,447 BTC during consolidation.
The increased derivatives activity arrived while spot price remained below major resistance. Consequently, traders closely monitored whether BTC could reclaim higher levels.
BTC Recovers After February Collapse
Chart data showed Bitcoin traded above the $91,000 to $96,000 range during January 2026 before reversing lower. In early February, BTC dropped toward the $62,000 to $67,000 region as trading volume surged.
The decline pushed Bitcoin below both the 50-day and 200-day moving averages. However, buyers gradually returned between March and April as price stabilized.
By May 2026, Bitcoin rebounded near the $81,800 resistance level before losing momentum again. BTC later traded around $76,600, while the 200-day moving average remained near $78,400.