Bitcoin experienced a price spike, rising above $26,800, signaling the resilience of bulls in a historically challenging September. However, as the price increased, profit-taking also surged, reaching its highest level in two months. On-chain data from market intelligence platform Santiment revealed that traders took advantage of the upward bounce to secure modest profits.
Despite the profit-taking, Bitcoin’s address activity remained high, with an average of 1.1 million Bitcoin addresses sending or receiving BTC daily. This level of activity represented the highest since April. Bitcoin’s recent 5% rebound over three days marked the first consecutive gains since the sharp spike on August 29. The cryptocurrency remains below its 200-week moving average, a region that has previously represented a buying opportunity.
While there are concerns about a potential bearish Bitcoin fractal forming, some analysts believe this region could provide an attractive pre-halving buying opportunity in preparation for a post-halving parabolic move.
Overall, Bitcoin’s price action and the level of address activity suggest continued interest and activity in the cryptocurrency despite profit-taking. The market remains constrained, and volatility may continue as traders seek profit-taking opportunities.