Bitcoin lively addresses are nearing a three-month excessive, signaling a possible crypto market capitulation which will stage a worth reversal from the most recent correction.
Energetic addresses on the Bitcoin community surged to over 912,300 on Feb. 28, a degree not seen since Dec. 16, 2024, when Bitcoin (BTC) traded for round $105,000, Glassnode knowledge exhibits.
Bitcoin variety of lively addresses. Supply: Glassnode
The surge in lively addresses might sign a “capitulation second” for the crypto market, in line with crypto intelligence platform IntoTheBlock. The agency famous in a Feb. 28 publish on X:
“Traditionally, spikes in on-chain exercise have typically coincided with market peaks and bottoms—pushed by panic sellers exiting and opportunistic patrons.”
“Whereas no single metric ensures a worth reversal, this surge suggests the market may very well be at a vital turning level,” the publish added.
In monetary markets, capitulation refers to traders promoting their positions in a panic, resulting in a big worth decline and signaling an imminent market backside earlier than the beginning of the following uptrend.
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Bitcoin should maintain above $80,500 to keep away from additional losses
Bitcoin’s potential to stay above the $80,500 threshold might act as a “potential catalyst for market stabilization,” in line with Stella Zlatareva, dispatch editor at digital asset funding platform Nexo.
Zlatareva informed Cointelegraph:
“Choices knowledge signifies that BTC’s potential to reclaim $80,500 can be a key consider near-term momentum. A breakout above this degree may pave the best way for additional upside, whereas a failure to determine it as assist might result in additional testing on the draw back.”
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Nonetheless, Bitcoin might revisit this important assist if its worth declines beneath $84,000.
Bitcoin trade liquidation map Supply: CoinGlass
A possible correction beneath $84,000 would set off over $1 billion value of leveraged lengthy liquidations throughout all exchanges, CoinGlass knowledge exhibits.
Regardless of short-term volatility, Bitcoin’s worth is nearer to forming a market backside than reaching a neighborhood high, in line with Bitcoin’s market worth to realized worth (MVRV) Z-score — a technical indicator used to find out whether or not an asset is overbought or oversold.
Bitcoin MVRV Z-Rating. Supply: Glassnode
Bitcoin’s MVRV Z-score stood at 2.01 on March 1, signaling that Bitcoin’s worth is approaching the inexperienced territory on the backside of the chart, turning into more and more oversold, Glassnode knowledge exhibits.
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