Bitcoin rose to highs above $26,800 on Thursday, before profit taking pushed kicked in to see it trade lower.
An analyst says price below the 200-week MA represents buying opportunity.
Meanwhile, address activity remains high, with 1.1 million BTC send or received daily.
Bitcoin spiked above$26,800 overnight Thursday as bulls bounced to hit its highest level since the decline to below $25k on Monday.
Traders eye profits after BTC bounce
With Friday looking likely to see a fourth consecutive green candle, the push to above $26,849 illustrated bulls’ resilience in a historically tough September.
However, the rise in profit ratio over the past three days has also seen BTC face a spike in profit taking deals. On-chain data shared via a chart by market intelligence platform Santiment shows that traders took advantage of the upside bounce to pinch small profits.
Per the data, Thursday saw the highest ratio of profit vs. loss taking in two months. Even then, address activity remained elevated to sit at 5-month highs, with an average of 1.1 million Bitcoin addresses either sending or receiving BTC daily. According to Santiment, Bitcoin’s address activity hovered at its highest level since April.
📈 #Bitcoin has continued to see 5-month high levels of unique address activity, with an average of 1.1M $BTC addresses sending and receiving coins per day. The +5% price rise over the past 3 days has also caused profit taking to hit a 2-month high today. https://t.co/GiGGABXv0s pic.twitter.com/f9PaTXjaut
— Santiment (@santimentfeed) September 15, 2023
What next for BTC?
Bitcoin’s +5% rebound over the past three days represents the first streak of gains since the sharp spike on 29 August. Bullish flip above $26k could be a great signal for bulls. However, the market remains largely constrained and volatility is likely to be on the downside as traders hunt for profit taking moves.
BTC is also below its 200-week moving average, the same region that constrained prices for months but as crypto analyst Rekt Capital says, the region has previously “represented a bargain-buying territory.” Bitcoin is once again in this region.
Even if there’s a Bearish Bitcoin Fractal forming…
— Rekt Capital (@rektcapital) September 15, 2023
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