Bitcoin, Has It Already Bottomed Out?...If It Continues Like This, It Will Go to '$90,000'

▲ Bitcoin (BTC)/ChatGPT generated image

Three key signals supporting the possibility that Bitcoin (BTC) has bottomed out have been simultaneously detected, rapidly spreading expectations for a market rebound.

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

The first notable indicator is the Sharpe ratio. This indicator plummeted to -43 before rebounding to 20.35, which is interpreted as an improvement in the risk-reward structure. Similar trends have been observed repeatedly during market bottoms in past cycles.

The second signal is the recent decrease in the proportion of buyers. The ratio of recently entered investors within the network value has fallen below 7%, a trend similar to what was seen 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 aimed at an upside. 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 around $73,700, and if this level is held, there is an analysis that a recovery to the average price range of approximately $96,000 is possible.

Meanwhile, with on-chain indicators and changes in supply-demand structure appearing 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.*