Bitcoin, Has It Already Bottomed Out?...If This Continues, It's Going to '$90,000'

▲ Bitcoin (BTC)/ChatGPT generated image

Market expectations for a rebound are rapidly spreading as three key signals supporting the possibility that Bitcoin (BTC) has bottomed out have been simultaneously detected.

According to Cointelegraph, a cryptocurrency specialized media outlet, on April 24 (local time), an analysis revealed that Bitcoin has shown three signals in recent on-chain metrics and market structure changes, suggesting a bottom formation.

The first indicator to note is the Sharpe ratio. This indicator plummeted to -43 before rebounding to 20.35, which is interpreted as an improvement in the risk-adjusted return structure. Similar trends have been observed repeatedly in market bottoming phases in past cycles.

The second signal is the recent decrease in buyer proportion. The percentage of recently entered investors in the network value has fallen below 7%, a trend similar to what was observed in the early stages of past bull markets. This is interpreted as a period where selling pressure eases as the influence of short-term participants diminishes.

The third is a change in fund flows. There has been an increase in Bitcoin moving from spot exchanges to derivatives platforms, which is often linked to positioning strategies anticipating an uptrend. This is read as a signal that market participants are making bullish bets using leveraged structures.

In terms of price structure, the defense of key support levels continues. Bitcoin is maintaining a critical support level based on Market Value to Realized Value (MVRV) formed at approximately $73,700. If this level is held, there is an analysis that a recovery to the average price range of approximately $96,000 is possible.

Meanwhile, as on-chain indicators and changes in supply-demand structure appear simultaneously, the market's transition from a downtrend to a re-accumulation phase is becoming increasingly clear.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*