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- Arbitrum’s price jump aligns with strong network growth and rising activity.
- Bitcoin remains range-bound as profit-taking caps momentum near $70K.
- Accumulation between $60K–$70K suggests growing structural support for BTC.
Crypto markets are sending mixed signals as strong activity on Layer-2 networks contrasts with Bitcoin’s ongoing consolidation. While Arbitrum’s (ARB) token has shown short-term bullish momentum, broader market sentiment remains tied to Bitcoin’s struggle to reclaim higher levels.
Arbitrum Rally Driven by Technical Strength and Network Growth
Arbitrum One surged roughly 11% in 24 hours before cooling, ranking among the top performers in the largest crypto assets by market capitalization. Trading volume climbed sharply to around $176 million, signaling renewed market participation.
Technical indicators suggest the token rebounded from a key demand area near $0.095, forming a pattern of higher lows and higher highs. Momentum signals have strengthened, with buyers stepping in after the asset moved out of a descending resistance channel. Some analysts now point to potential upside targets around $0.145 in the near term, while broader resistance sits closer to $0.22 if momentum persists.
Beyond price action, on-chain data highlights strong ecosystem engagement. Monthly trading activity on the network rose more than 20%, while revenue and fees also increased. Active addresses jumped significantly, underscoring continued adoption across decentralized applications.
Transaction levels reinforce this trend. Arbitrum processed millions of daily transfers, accounting for a sizable share of activity among Ethereum Layer-2 networks. It trails only Base in transaction volume, signaling sustained competition in the scaling race.
Bitcoin’s Realized Losses Reveal Market Caution
Meanwhile, Bitcoin continues to trade within a tight range as investor behavior reflects lingering uncertainty. On-chain metrics show realized losses expanded sharply earlier in February as prices dropped from late-January highs near $90,000.
Although selling pressure has eased somewhat, losses still outweigh profits across the market. Brief rallies toward the $69,000 region have triggered waves of profit-taking, repeatedly capping upward momentum and keeping Bitcoin trapped below the $70,000 resistance band.
Accumulation Zone Suggests Structural Support
Despite muted price action, blockchain data reveals a notable concentration of Bitcoin supply between $60,000 and $70,000. Large holdings clustered near the mid-$60,000 range suggest aggressive dip-buying during the correction.
At the same time, demand signals from U.S. traders appear to be returning. The premium on Coinbase recently flipped positive after months of weakness, hinting that institutional buyers may be gradually re-entering the market. Still, analysts warn that sustained confirmation is needed before declaring a full shift in sentiment.
Also Read: Layer-2 Showdown: Polygon vs. Arbitrum vs. Optimism vs. Base—$11.2B vs $6.8B Tells the Real Story
Together, these trends paint a cautious but evolving picture. Arbitrum’s expanding activity shows that Layer-2 ecosystems remain a growth engine for crypto infrastructure. Yet Bitcoin’s consolidation continues to dictate the broader market tone.
If network growth on scaling solutions continues and institutional demand for Bitcoin strengthens, the market could see renewed upside. Until then, traders may expect volatility within established ranges rather than a decisive breakout.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
