Bitcoin Shows Strong On-Chain Activity, Is BTC Price Forming Bottom?

The world’s largest cryptocurrency Bitcoin (BTC) has bounced back to $26,500 levels and has been sustaining there for quite some time. This week has been pretty volatile for Bitcoin amid the news of FTX creditor liquidation. However, in the recent bounceback, Bitcoin has witnessed a healthy uptick in network activity.

On-chain data provider Santiment explains that Bitcoin has maintained its streak of 5-month high levels of unique address activity, boasting an average of 1.1 million BTC addresses actively sending and receiving coins daily. Additionally, the recent 5% price surge over the past 3 days has triggered a surge in profit-taking, reaching its highest point in 2 months today.

Also, there’s been some profit-taking as well since Bitcoin traders register the highest ratio of profit vs loss taking in two months.

Popular crypto analyst Michael van de Poppe believes that bitcoin could probably not see much fall as expected. Also news such as Deutsche Bank launching crypto custodial solutions has provided a major support to the market.

Poppe explains that we’ve observed a price sweep at the $25,000 level and it appears that support should hold at higher price levels.

In this scenario, it’s crucial for the market to maintain levels between $25,600 and $25,900, as a breach below this range is likely to trigger a cascade of stop-loss orders before significant price movements can occur.

The likelihood of the market bottoming out in this cycle has increased. One key indicator is that we are once again trading above the 200-Week Exponential Moving Average (EMA), and it’s probable that we will close above it in this cycle as well.

A Look At Bitcoin Options Data

There are 22,000 BTC options nearing expiration, featuring a Put Call Ratio of 0.74, a maximum pain point at $26,000, and a notional value of $560 million, shows data from Greeks Live.

BTC has exhibited minimal intraday fluctuations, with notable fluctuations primarily occurring on Tuesdays. It’s common for recent price swings to be concentrated within one or two days each week, resulting in a relatively narrow market focus. Token2049 has seen very few impactful news developments during this period.

As a consequence of these factors, BTC Call positions for this week’s delivery have experienced a substantial decrease.