Bitcoin’s on-chain activity has surged to levels last seen in December, potentially signaling a major shift in market sentiment.
Data from Glassnode shows that active Bitcoin addresses soared past 912,300 on February 28, marking a three-month high.
According to crypto analytics firm IntoTheBlock, this spike in network activity could indicate a critical market moment, as historical patterns suggest that sharp increases in on-chain transactions often coincide with major price tops and bottoms.
The firm noted that while no single metric guarantees a reversal, the trend suggests Bitcoin may be nearing a crucial turning point.
In market terms, capitulation occurs when widespread panic selling drives prices down sharply before setting the stage for a rebound. And without any delay, the crypto market surged and it appears that bullish reversal is already happening.
The price of Bitcoin just rebounded to over $94,000 after Donald Trump announced the creation of a national crypto reserve, with BTC being at the center of it.
In a recent live address, U.S. President Donald Trump declared that a new base tariff of 10% would be applied universally to all countries.
Metaplanet, a Tokyo-based investment firm, has continued its aggressive push into Bitcoin by acquiring an additional 160 BTC for approximately $13.3 million.
Bitcoin’s downward trend could persist longer than expected, according to some analysts who see similarities with the 2022 bear market.
Bitcoin’s outlook for April appears uncertain as investors remain cautious, struggling to find clear reasons for a potential rebound.