The largest cryptocurrency Bitcoin (BTC) once again returned above the $26,500 level and has been trading above this threshold for some time. The news that the bankrupt cryptocurrency exchange FTX will liquidate its approximately $3.4 billion worth of cryptocurrencies for its creditors triggered volatility in the price of Bitcoin. However, the recent price increase resulted in a healthy increase in Bitcoin’s on-chain activity.
Increase in Profit Taking in Bitcoin
On-chain data provider Santiment reported that Bitcoin continues its series of unique address activity at the highest level in the last 5 months, with an average of 1.1 million wallet addresses actively sending and receiving BTC. In addition, the 5% price increase in the last 3 days triggered an increase in profit taking by investors, reaching the highest level in the past 2 months. Bitcoin investors also had the opportunity to make some profit after recording the highest profit-loss ratio in the last two months.
Experienced cryptocurrency analyst Michael van de Poppe made a statement that reassured investors, predicting that the price of Bitcoin will probably not fall as much as expected. Poppe emphasized the high probability of the $25,000 level being a bottom and said that the price needs to hold above this support level. In this scenario, it is crucial for the price of the crypto king to stay above the levels between $25,600 and $25,900. A drop below this range could trigger a significant amount of stop-loss orders, in other words, triggering a loss-cutting mechanism.
Furthermore, there is an increased possibility that the cryptocurrency market has hit bottom in the current cycle. The price is once again trading above the 200 Weekly Exponential Moving Average (EMA), and it can be expected for the price to close above the 200-week EMA on the weekly time frame.
Latest Bitcoin Options Data
Bitcoin options data from Greeks Live indicates a put-to-call ratio of 0.74, a maximum pain point of $26,000, and an option consisting of 22,000 BTC with a nominal value of $560 million that will expire soon.
Although the largest cryptocurrency has shown minimum volatility for the past few days, there was a significant increase in volatility on September 12. The increase in volatility tends to concentrate within one or two days each week, causing relatively narrow price movements.
