Thanks for the reply.
I'm using 16 MHz Crystals, but they are cheap, and has low tolerance levels (for example, one of them can do baudrate up to 57600 but the same model another gives garbage at anything higher than 28800). And I have experience with other blink sketches but this is nothing like them. This blinks start as soon as I apply power, they are short blinks (.5s) with long gaps (1.5s) like it is trying to give the initial blinks of the bootloader but resets in the middle of the process.
Also, I'm using lfuse=0xFF, hfuse=0xDA and efuse=0x05 for Non-Optiboot, and lfuse=0xFF, hfuse=0xDE, efuse=0x05 for Optiboot.