Bitcoin rose to highs above $26,800 on Thursday, before profit taking kicked in and saw it trade lower. An analyst says that price below the 200-week MA represents a buying opportunity. Address activity remains high, with 1.1 million BTC sent 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. With Friday 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 from 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 at 5-month highs, with an average of 1.1 million Bitcoin addresses either sending or receiving BTC daily.
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.
