Bitcoin (BTC), Has the Typical Bottom Arrived..."All Signals Appearing"

▲ Bitcoin (BTC), Bear Market, Cryptocurrency Decline/AI Generated Image

Signals resembling the 2022 bear market bottom have been detected in Bitcoin (BTC). Analysts claimed that the worst of the downturn is over, calling it a “textbook Bitcoin bottom.”

According to Cointelegraph, a cryptocurrency specialized media outlet, on July 8 (local time), the Bitcoin quantitative analysis account Frank analyzed that bottom signals are appearing one after another. Frank stated, “This is a textbook Bitcoin bottom. All bottom signals have either already appeared or are in the process of appearing.”

The basis for this came from the 200-week simple moving average and quantile indicators. In particular, the 9th quantile captured the reversal points during the 2022 bear market bottom and the March 2020 COVID-19 crash. The analysis suggests that Bitcoin has re-entered this reversal zone.

The movements of short-term holders also drew attention. The SOPR of short-term holders, wallets that have held Bitcoin for up to 6 months, has turned into a profit zone. Frank said, “The phenomenon of the market generating profits for short-term holders is a characteristic of a bull market.”

As Bitcoin rebounds towards $65,000, short-term holders are realizing profits. Frank evaluated the recent trend as movements similar to past macro bottom formations. Market analysis that the 2026 bear market is nearing its end is also gaining traction.

However, CryptoQuant warned of the possibility of further capitulation by short-term holders. Contributor Trader Germini explained that in past strong bottoming periods, the short-term holder SOPR dropped even deeper to around 0.93. He added, “The market has cooled, but strong short-term holder capitulation signals have not yet appeared.”

[Article Key Summary]

-Reversal signals seen during the 2022 bear market bottom and the March 2020 crash have been detected again in Bitcoin.

-Frank evaluated the shift of short-term holder SOPR into a profit zone as a characteristic of a bull market.

-CryptoQuant pointed out that strong capitulation signals around 0.93, which appeared during past bottoms, have not yet been confirmed.

*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.*