The recent spike in active Bitcoin addresses may be signalling a market shift. While Bitcoin is correcting itself, the spike in activity suggests that the market is at or near a turning point.
What Is Going on with Bitcoin Active Addresses?
Bitcoin witnessed more than 912,300 active addresses on February 28, the highest in almost three months. The spike is the same as what occurred in December 2024, when Bitcoin was at levels of about $105,000. As per Glassnode data, this increase in activity might be indicating a “capitulation moment.” Simply put, this indicates that most investors are selling in desperation, which typically occurs at the bottom of the market before prices begin to climb again.
The Significance of Remaining at $80,500
In order for the price of Bitcoin to stabilize, according to experts, it must remain above $80,500. If Bitcoin manages to break through this barrier, it might be followed by further upward movement. Conversely, if it goes below $84,000, it might lead to further liquidations and further losses.
Market Update: $BTC, $SOL & $TRUMP Pumping#Bitcoin (BTC): Trading at $84,045, up 0.56%. BTC remains strong, testing resistance near $85K, with bullish momentum.#Solana (SOL): Up 6.38% to $145.17, benefiting from increased DeFi and meme coin activity on its network.#Trumpcoin… pic.twitter.com/hHbwjb0VPA
— MD DODO (@MYA_DODO) February 28, 2025
Indications of Bitcoin Being Oversold
Per a technical measure named MVRV Z-score, Bitcoin could be oversold. That is to say, it could be due for a bottom in price, as opposed to a top. The MVRV Z-score is at 2.01, meaning the price of Bitcoin may be soon set to flip, since the price is turning undervalued.
Though it is not possible to forecast market movements with definite certainty, these indicators indicate that Bitcoin may be reaching a turning point. If it remains firm and crosses important price levels, the market can heal soon.
