Bitcoin Activity Surges, Hinting at Market Bottom and Potential Reversal

Coin WorldSunday, Mar 2, 2025 5:16 am ET

1min read

Bitcoin activity surges, hinting at market bottom and potential reversal

Bitcoin's active addresses have reached a three-month high, signaling a potential capitulation in the crypto market and a possible price reversal from the latest correction. According to Glassnode data, active addresses on the Bitcoin network surged to over 912,300 on Feb. 28, a level not seen since Dec. 16, 2024, when Bitcoin (BTC) traded for around $105,000.

Crypto intelligence platform IntoTheBlock noted in a Feb. 28 post that historically, spikes in on-chain activity have often coincided with market peaks and bottoms, driven by panic sellers exiting and opportunistic buyers. While no single metric guarantees a price reversal, the surge in active addresses suggests that the market could be at a crucial turning point.

In financial markets, capitulation refers to investors selling their positions in a panic, leading to a significant price decline and signaling an imminent market bottom before the start of the next uptrend. Bitcoin's ability to remain above the $80,500 threshold may act as a potential catalyst for market stabilization, according to Stella Zlatareva, dispatch editor at digital asset investment platform Nexo.

Zlatareva told Cointelegraph that options data indicates that BTC's ability to reclaim $80,500 will be a key factor in near-term momentum. A breakout above this level could pave the way for further upside, while a failure to establish it as support may lead to further testing on the downside. However, Bitcoin may revisit this crucial support if its price declines below $84,000.

A potential correction below $84,000 would trigger over $1 billion worth of leveraged long liquidations across all exchanges, CoinGlass data shows. Despite short-term volatility, Bitcoin's price is closer to forming a market bottom than reaching a local top, according to Bitcoin's market value to realized value (MVRV) Z-score.

Bitcoin's MVRV Z-score stood at 2.01 on March 1, signaling that Bitcoin's price is approaching the green territory at the bottom of the chart, becoming increasingly oversold, Glassnode data shows. This suggests that the market may be at a point where a reversal could

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