"If you don't buy now, it's over"...Bitcoin, 'historic buy signal' has erupted

▲ Bitcoin (BTC)/ChatGPT generated image

An analysis suggests that Bitcoin (BTC) has entered an early recovery phase, simultaneously revealing key indicator signals that previously only appeared just before major price surges.

According to a report by crypto media outlet The Crypto Basic on April 9 (local time), Bitcoin's major on-chain indicators have currently reached a range suggesting a strong possibility of a rebound. Moreno, a CryptoQuant certified analyst, diagnosed that the short-term Sharpe ratio and buy/sell pressure delta are simultaneously showing recovery signals, indicating that the current period is a favorable entry point for patient investors.

The short-term Sharpe ratio recently plummeted to -40, indicating an extreme undervaluation. This figure is an unusual pattern that only appeared just before Bitcoin began major rallies in 2015, 2019, 2020, and 2023. The analyst emphasized that whenever this indicator reached extreme lows, the market formed generational buying opportunities. Currently, Bitcoin has re-entered an area that has served as a major accumulation zone over the past decade.

The buy and sell pressure delta also clearly shows a shift in market structure. As the sharp selling pressure peaks, supply pressure is gradually easing, and the indicator shows a trend moving towards a stabilization phase. Typically, a market bottom forms during the process of supply reduction after strong selling, and the current situation corresponds to this early stage.

However, for the market to transition into a full uptrend, confirmation that buying pressure clearly surpasses selling pressure is needed. While it has not yet fully entered a demand-dominant phase, the current moment, with significantly reduced selling pressure, is considered the beginning of a structural transition. The analyst defined the current market as a 'transition period between reduced selling and renewed demand,' explaining that liquidity and the macroeconomic environment will be variables determining the pace of recovery.

Bitcoin stands at the starting line of a new uptrend cycle, with key indicators converging. Past examples show that the current zone has provided a favorable risk-reward structure from a long-term perspective. The market is focusing on structural recovery signals indicated by data rather than short-term volatility, showing a trend of preparing for the next phase.

*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.*