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Increasing Bitcoin activity indicates under the market, potential return

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Bitcoin’s active addresses are close to a three-month high, signing a potential crypto market capitulation that can sting a return to price from the latest correction.

The active addresses on the Bitcoin network rose to more than 912,300 on Feb. 28, a level that has not been seen since December 16, 2024, when the Bitcoin (Btc) exchanged for $ 105,000, Glass node Data displays.

*The number of active addresses. Source: Glassnode*

Advancement to active addresses can signal a “capitulation moment” for the crypto market, According to In the Crypto Intelligence Platform Intotheblock. The firm mentioned in a post Feb. 28 to X:

“Historically, spikes in the on-chain activity often coincide with market peaks and bottom-driven panic sellers come out and opportunities consumers.”

“While no single metric guarantees a return to price, this climb suggests that the market can be an important point in the process,” the post added.

In financial markets, capitulation refers to investors selling their positions in a panic, leading to a significant decrease in price and signing an imminent bottom of the market before the next ending begins.

Bitcoin must hold above $ 80,500 to avoid further losses

Bitcoin’s ability to stay above the $ 80,500 threshold can act as a “potential catalyst for market stabilization,” according to Stella Zlatareva, Dispatch Editor on the Digital Asset Investment Platform Nexo.

Zlatareva told Cointelegraph:

“Options data suggest that the BTC’s ability to obtain $ 80,500 will be a major factor in the near momentum. A breakout above this level can provide the way for further upside down, while a failure to establish it as support can lead to further downside testing.”

However, Bitcoin can revisit this important support if its price refuses below $ 84,000.

*Source of Bitcoin Exchange Liquidation Map: Coinglass*

A potential correction below $ 84,000 will trigger over $ 1 billion worth of leveraged long liquid in all exchanges, Coinglass Data displays.

Despite the short-term volatility, the price of Bitcoin is closer to developing a bottom of the market than reaching a local top, according to the value of the Bitcoin market in the realized value (MVRV) Z-Score-a technical indicator used to determine if an asset is overly discussed or oversold.