The number of active Bitcoin addresses is approaching a three-month peak, indicating a possible crypto market capitulation that could lead to a price rebound following the recent downturn.
On Feb. 28, active addresses on the Bitcoin network exceeded 912,300, a figure not recorded since Dec. 16, 2024, when Bitcoin (BTC) was valued at approximately $105,000, as per Glassnode’s data.
Active Bitcoin addresses. Source: Glassnode
This growth in active addresses may indicate a “capitulation moment” for the crypto market, as suggested by crypto intelligence platform IntoTheBlock. The firm highlighted in a post on X on Feb. 28:
“Historically, surges in on-chain activity have often aligned with market peaks and troughs—driven by panic sellers clearing out and savvy buyers stepping in.”
“Although no single metric can assure a price turnaround, this influx points to a potentially pivotal moment for the market,” the post explained.
In financial terminology, capitulation refers to the phenomenon where investors abandon their positions out of fear, often resulting in a marked price drop and hinting at a looming market bottom prior to a new upward trend.
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Bitcoin must maintain above $80,500 to prevent further losses
According to Stella Zlatareva, dispatch editor at digital asset investment platform Nexo, Bitcoin’s capacity to stay above the $80,500 mark could serve as a “potential catalyst for market stabilization.”
Zlatareva shared with Cointelegraph:
“Options data indicates that BTC’s ability to reclaim $80,500 will be a crucial factor for near-term momentum. A breakout above this level might open up further upward potential, whereas failing to establish it as support could lead to more downside testing.”
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However, Bitcoin might need to revisit this essential support if its price dips below $84,000.
Bitcoin exchange liquidation map Source: CoinGlass
A price correction that falls below $84,000 could trigger over $1 billion in leveraged long liquidations across various exchanges, as per CoinGlass data.
Despite short-term fluctuations, Bitcoin’s price appears to be on the verge of forming a market bottom rather than nearing a local peak, based on the market value to realized value (MVRV) Z-score—a technical gauge for assessing whether an asset is overvalued or undervalued.
Bitcoin MVRV Z-Score. Source: Glassnode
On March 1, Bitcoin’s MVRV Z-score was recorded at 2.01, indicating that its price is nearing the oversold zone at the bottom of the graph, as indicated by Glassnode data.
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