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Bitcoin Price Update: Market Bottom Yet to Be Reached

Bitcoin Price Update

Bitcoin (BTC) continues to fluctuate within a consolidation range between $94,000 and $100,000, many traders and investors are keeping a close eye on the market, trying to determine whether the cryptocurrency has reached its lowest point. Despite the ongoing price swings and heightened volatility across the crypto market, key indicators suggest that Bitcoin may still be some distance away from hitting its bottom.

Why Bitcoin’s Bottom Is Not Here Yet

A critical tool in predicting market trends is the Long/Short Ratio, which compares the amount of Bitcoin held in long positions (bets that the price will rise) versus short positions (bets that the price will fall). According to analysts from Alphractal, the market bottom tends to occur when Bitcoin’s Long/Short Ratio crosses the average Long/Short Ratio of altcoins. As of now, Bitcoin’s ratio is sitting at 1.48, while altcoins have a ratio of 2.55. This discrepancy indicates that there has been no crossover since September 2024, meaning investors are currently more confident in altcoins than in Bitcoin. Until this crossover happens, the market will likely experience more consolidation rather than a definitive bottom.

Historically, when Bitcoin’s Long/Short Ratio falls behind altcoins in this manner, it often signals that more confidence is placed in the altcoin market, further delaying the possibility of Bitcoin hitting its market low. Therefore, this data suggests that the bottom for Bitcoin has yet to materialize, and traders should be cautious of expecting an immediate reversal in price trends.

Market Sentiment: Optimism Among Long-Term Holders

While the macro picture suggests caution, there are signs of bullish sentiment among Bitcoin’s long-term holders. One of the most reliable indicators of investor confidence is Coin Days Destroyed (CDD), a metric that tracks the number of Bitcoin that has remained dormant for a certain period of time. A decrease in CDD shows that long-term holders are not moving their assets, which usually indicates confidence in Bitcoin’s future price appreciation.

In the past week, CDD has dropped sharply, signaling that long-term holders are holding onto their BTC rather than selling during this period of uncertainty. This trend reflects that these investors anticipate that Bitcoin’s price will rise in the future, supporting the belief that Bitcoin still has upside potential. Furthermore, the number of unspent Bitcoin continues to climb, now reaching 18.1 million, suggesting that long-term holders are accumulating and waiting for more favorable price levels before making moves.

Additionally, Bitcoin’s Mayer Multiple has dropped to 1.25, which is still relatively low compared to historical levels. The Mayer Multiple compares Bitcoin’s current price to its 200-day moving average (200DMA). In past cycles, when the Mayer Multiple was between 1.2 and 1.5, Bitcoin experienced significant upward momentum. With Bitcoin’s price currently 25% above its 200DMA, the stage appears set for a bullish move if the right market conditions align.

Bitcoin’s Path Forward: Can It Break $100k Again?

Even though Bitcoin’s market bottom has not yet been reached, the broader sentiment remains relatively positive, particularly among long-term holders. The price consolidation Bitcoin has been experiencing suggests that the cryptocurrency is likely undergoing a temporary phase of correction, after which it could see upward momentum.

If Bitcoin maintains its current support levels and continues to hold above the $94k mark, it could target breaking through the critical $99,500 range and potentially reclaim the $100,000 level. However, the unpredictability of macroeconomic conditions and the ongoing market volatility could cause further fluctuations in price. Traders need to stay alert to potential dips, especially if Bitcoin fails to break through the $100k resistance in the short term.

Conclusion:

In summary, while the market bottom for Bitcoin is not yet confirmed, key indicators point toward a possible upward trajectory in the coming months. Although the market has experienced volatility and price fluctuations, long-term holders are holding steady, expecting higher prices in the future. As Bitcoin continues its consolidation phase, it is likely to see further bullish momentum once macroeconomic factors stabilize. For now, Bitcoin remains poised for future growth, although there could be short-term corrections along the way.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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