Bitcoin (BTC) has faced notable ups and downs, reflecting broader market trends. The price of Bitcoin saw a considerable dip following a market crash on August 5th, which shook not just Bitcoin but the entire cryptocurrency landscape. The price briefly surged to $60,000, only to encounter resistance and drop to around $54,000. Despite these fluctuations, several indicators suggest that Bitcoin’s bullish phase may be far from over. Here’s a closer look at why the current rally could be just the beginning.

1. Low Orderbook Depth Signals Potential Rebound

One critical indicator to watch is Bitcoin’s orderbook depth. Recent analysis shows that the orderbooks are shallow, with significant gaps in buy and sell orders. This low orderbook depth, observed at levels of 0-1% and 1-5%, often signals that a market bottom may be approaching. Historically, such shallow orderbooks have preceded significant bullish rallies. As Bitcoin trades through this period of low orderbook depth, it might be setting the stage for a rebound as the market finds new support.

2. Fibonacci Levels and Bitcoin’s Bounce Potential

Bitcoin’s price action has also interacted with key Fibonacci retracement levels. The 0.618 Fibonacci level, which is often seen as a crucial support point, was not upheld this time. However, BTC found support at the 0.786 level—a Fibonacci retracement that has shown strong reliability throughout the year. This level now represents a critical juncture: a potential bounce from this point could signify the end of the recent downtrend and the beginning of a new upward trajectory. If Bitcoin adheres to historical patterns, a bounce could follow, especially if combined with other bullish indicators.

3. Mayer’s Band Suggests More Room to Grow

The Mayer’s Band, a tool used to assess Bitcoin’s price relative to its historical performance, provides further optimism. According to this metric, the current bull cycle may not be over yet. The band’s analysis suggests a potential price target of $95,000 for Bitcoin, indicating that the current cycle still has considerable room for growth. Long-term traders might want to focus on broader trends rather than short-term fluctuations, as Bitcoin appears poised for more substantial gains, potentially reaching a new all-time high.

4. Adjusted Dormancy Flow Points to a Possible Rebound

Another crucial metric is Bitcoin’s adjusted dormancy flow. Currently, this indicator reads around $10—a level at which Bitcoin has historically bounced back. The combination of a low orderbook depth and this dormancy flow reading adds weight to the theory that Bitcoin might soon experience a rebound. While short-term drops to around $50,000 are possible, the overall trend suggests that a more significant upward movement could be on the horizon, potentially pushing Bitcoin to surpass its previous highs.

5. Increased Whale Activity and Market Accumulation

The behavior of Bitcoin whales—large holders of the cryptocurrency—also provides insight into future price movements. Recent data shows that whales are increasing their long positions with low leverage, typically between 1.2x and 3x. Unlike retail traders who might react emotionally to market swings, whales employ algorithms for Dollar Cost Averaging (DCA) into low-leverage positions. This calculated approach suggests that whales are positioning themselves for future gains. As these large players accumulate Bitcoin during this downturn, they could drive the price higher as the market recovers.

In Conclusion

Despite recent setbacks, several factors indicate that Bitcoin’s current bull cycle might just be getting started. Low orderbook depth, critical Fibonacci levels, the Mayer’s Band’s predictions, adjusted dormancy flow, and increased whale activity all point towards a potential rebound and continued growth. While there may be some short-term volatility, the overall outlook for Bitcoin remains positive, with possibilities for new highs on the horizon.