Bitcoin active addresses surge past 912,000

Bitcoin's (CRYPTO:BTC) active addresses have surged, signaling a potential market shift and a possible price reversal following a recent correction.

Data from Glassnode indicates that active addresses on the Bitcoin network reached over 912,300 on February 28, a level not seen since December 16, 2024, when Bitcoin was valued around $105,000.

The increase in active addresses may indicate a 'capitulation moment' for the cryptocurrency market, according to the crypto intelligence platform IntoTheBlock.

In a February 28 post, IntoTheBlock noted that historically, spikes in on-chain activity have often aligned with market peaks and bottoms, driven by panic sellers exiting and opportunistic buyers entering the market.

While no single metric guarantees a price reversal, this surge suggests the market could be at a critical turning point.

In financial markets, capitulation refers to investors selling their positions in panic, leading to a significant price decline and signaling an imminent market bottom before the start of the next uptrend.

Bitcoin's ability to maintain a position above the $80,500 mark is crucial to avoid further losses.

Stella Zlatareva, dispatch editor at digital asset investment platform Nexo, emphasised that Bitcoin's ability to reclaim $80,500 will be a key factor in determining near-term momentum.

A breakout above this level could pave the way for further upside, while failing to establish it as support may lead to further testing on the downside.

A potential correction below $84,000 could trigger over $1 billion worth of leveraged long liquidations across all exchanges, according to CoinGlass data.

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 realised value (MVRV) Z-score – a technical indicator used to determine whether an asset is overbought or oversold.

At the time of reporting, the Bitcoin (BTC) price was $93,235.93.