The world’s largest cryptocurrency Bitcoin (BTC) has returned to a level of $26,500 and has been holding there for quite some time. This week has been quite volatile for Bitcoin due to the news of the liquidation of FTX creditors. However, Bitcoin saw a sharp increase in network activity during its recent rally.
On-chain data provider Santiment explains that Bitcoin has maintained its 5-month high in unique address activity, boasting an average of 1.1 million BTC addresses actively sending and receiving coins daily. Additionally, the recent 5% price increase over the past three days has triggered a surge in profit-taking, reaching its highest level in two months today.
There was also some profit-taking as Bitcoin traders recorded their highest profit-to-loss-taking ratio in two months.
Courtesy: Santiment
Well-known crypto analyst Michael van de Poppe believes that Bitcoin is unlikely to fall sharply as expected. News such as Deutsche Bank launching crypto custody solutions has also given the market great support.
Poppe explains that we have observed a price fluctuation at the $25,000 level and it appears that support should continue even at higher price levels.
In this scenario, it is crucial for the market to hold the level between $25,600 and $25,900, as breaking below this range is likely to trigger a cascade of stop-loss orders before any significant price movement can occur.
The likelihood of the market bottoming out in this cycle has increased. A key indicator is that we are once again trading above the 200-week EMA (Exponential Moving Average) and it is likely that we will also close above this cycle.
A look at Bitcoin options data
There are 22,000 BTC options nearing expiration, with a put-call ratio of 0.74, a maximum pain point of $26,000, and a notional value of $560 million, data from Greeks Live shows .
BTC experienced minimal intraday fluctuations, with notable fluctuations occurring mainly on Tuesdays. It is common for recent price fluctuations to be concentrated in one or two days per week, resulting in relatively narrow market focus. Token2049 has seen very few influential news developments during this period.
As a result of these factors, BTC call positions for delivery have decreased significantly this week.
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