The crypto market may be poised for a significant shift, as the number of active Bitcoin addresses has reached its highest level in three months. This rise in activity usually indicates improved investor mood, which can cause changes in market movements.
With Bitcoin trading at about $105,000, its active addresses on February 28 exceeded 912,300, a figure last seen on December 16, 2024. This rise points to a possible “capitulation moment”—a phase whereby panic-driven selling results in large market falls before a possible recovery.
According to the cryptocurrency analytics tool IntoTheBlock, market tops and bottoms generally coincide with past increases in on-chain activity. Usually stemming from both sellers leaving and opportunistic buyers intervening, increasing trading activity marks a pivotal point for price action.
In the financial markets, capitulation is huge investor sell-offs motivated by panic that usually marks the end of a decline before a reversal takes place. Traders seeking possible points of entrance actively monitor this trend.
Important Support Levels Regarding the Stability of Bitcoin
Bitcoin has to be above the $80,500 threshold if we are to avoid more falls. Maintaining this level, according to analysts, would offer a basis for stabilization of the market. Should Bitcoin effectively recover this benchmark, it could create conditions for more profits. Ignoring this, meanwhile, would cause more downward pressure—particularly if the price drops below $84,000.
A plunge under $84,000 might result in almost $1 billion in leveraged long liquidations on main exchanges, hence raising market volatility. Notwithstanding these transient swings, important metrics point to Bitcoin approaching a market bottom instead of reaching a local peak.
The market situation of Bitcoin
Technical indicators showing that the asset is almost in the oversold zone include the Market Value to Realized Value (MVRV) Z-score, which helps evaluate whether Bitcoin is overpriced or undervalued. With an MVRV Z-score of 2.01 on March 1, Bitcoin’s price might be about within a suitable buying range.
Although no one statistic promises a price reversal, present tendencies point to Bitcoin at a turning point. To guess the next significant market movement, traders and investors will pay great attention to these signs.
