like Bitcoin price continues to face downward pressure and performance, and speculation about a BTC price bottom has increased significantly. sector or community. However, accurately determining whether BTC has reached the bottom relies heavily on on-chain data from several indicators that show that the bottom has not yet been reached.
Bitcoin fix may not complete
decision Bitcoin price bottom This has become quite difficult in the ongoing market cycle. In the meantime, several key on-chain indicators are calling for caution, with data suggesting that major crypto assets may not yet have fully found a bottom in this market cycle.
After on-chain analysis, Alphractal, an advanced investment and on-chain data platform, outlined: The BTC market is bleeding steadily, but the true bottom has not yet been achieved. The platform’s analysis primarily focuses on two key metrics, including BTC net unrealized profit/loss (NUPL) and BTC delta growth rate (market cap versus realized cap).
These signs suggest that the market may still be dealing with oversupply and uncertainty, as evidenced by the continued decline in BTC price. It is clear from the bearish signals in both indicators that confirming a true bottom may require extended or more time-based data-driven validation.
As you can see in the chart, Net Unrealized profits/losses The indicator started to fall, indicating that unrealized profits across the network were starting to compress. Despite the decline, the indicators are still in positive territory. This means that market participants continue to make profits rather than losses.
Alphractal emphasized that historically, a true cycle bottom develops only when the indicator turns negative and enters full surrender mode. Meanwhile, the BTC delta growth rate is already showing negative movement, signaling the end of speculative activity and the beginning of fundamentals. accumulation phase.
The bearish outlook has strengthened with the decline in BTC price.
After a downward trend last weekend, Bitcoin price is now trading below $90,000 again. according to Investment pioneer Swissblock’s recent price action has further strengthened the bearish outlook for the market.
As the cryptocurrency king loses key support at the $89,200 level bitcoin risk The index is showing a steady upward trend, heightening the overall bearish sentiment. However, the platform noted that Bitcoin bulls continue to hold an important line of defense around the $84,500 level, which is currently acting as an immediate target for the decline. Swissblock outlined two separate scenarios that could play out in the upcoming session.
In case of bullishness, the platform will support the $84,500 level if it holds. liquidity sweep This may happen at this point. At the same time, risk indices begin to cool, encouraging entry with high confidence in buy positioning. Analyzing a bearish scenario, Swissblock noted that a decline and consolidation below the $84,500 level is likely to trigger a deeper correction, targeting a new low below the November level at $74,000.
Featured image from Pixabay, chart from Tradingview.com
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