as Bitcoin price continues to face downward pressure and performance, and speculation about a Bitcoin price bottom has increased significantly domestically. sector or community. However, accurately determining whether BTC has hit the bottom relies heavily on on-chain data from several indicators, which currently indicate that BTC has not yet hit the bottom.
Bitcoin correction may not occur
decide Bitcoin price bottom The ongoing market cycle has made it quite difficult. Meanwhile, several key on-chain indicators are showing caution, with data suggesting the flagship cryptocurrency asset may not have fully found the bottom in this market cycle yet.
After on-chain analysis, an overview of Alpharactal, an advanced investment and on-chain data platform, was presented. The BTC market has been bleeding steadily, but the true bottom has not yet been reached. The platform’s analysis mainly focuses on two key metrics including BTC Net Unrealized Gain/Loss (NUPL) and BTC Delta Growth Rate (Market Capitalization and Realized Cap).
These signs suggest that the market may still be dealing with oversupply and uncertainty, as evidenced by the continued decline in BTC prices. With the bearish signals from the two indicators, it is clear that an extended data-driven review or more time may be required to confirm the true bottom.
As you can see in the chart, the net unrealized profit and loss The metric is starting to decline, suggesting that the unrealized gains across the network are starting to compress. Despite the decline, this indicator is still in positive territory. This means that market participants continue to make profits rather than losses.
Al-Faraktar emphasized that historically, a true cycle bottom unfolds only when the indicators turn negative and enter full capitulation mode. On the other hand, the BTC delta growth rate has already shown negative movement, indicating the end of speculative activity and the beginning of fundamentals. accumulation stage.
Bearish outlook strengthens as BTC price falls
Following last weekend’s pullback, Bitcoin prices are now trading below $90,000 once again. According to For investment pioneer Swissbloc, recent price movements have reinforced the bearish outlook for the market.
As the cryptocurrency king loses major support at the $89,200 level, Bitcoin risks The index has been steadily rising, and the overall bearish mood is increasing. However, the platform noted that Bitcoin bulls continue to maintain an important line of defense at the $84,500 level, which is now the immediate downside target. Swissblock outlined two different scenarios that could play out in the coming sessions.
If the $84,500 support holds, the platform is bullish. liquidity sweep It can happen at this point. At the same time, the risk index begins to cool down and high-conviction entries are directed towards long positioning. Analyzing the bearish scenario, Swissbloc noted that a decline and consolidation below the $84,500 level is likely to trigger a deeper correction, with the main target being a new low below November levels at $74,000.
Featured image from Pixabay, chart from Tradingview.com
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