As Bitcoin price continues to be under downward pressure and performance, speculation about BTC price bottom has increased significantly area or community. However, accurately determining whether BTC has reached the bottom is highly dependent on on-chain data from multiple metrics, which are now showing that the bottom has not yet arrived.
Bitcoin can’t be fixed
Determination Bitcoin price is at its lowest This has become quite difficult in the current market cycle. Meanwhile, several key on-chain metrics are sounding a note of caution and showing data that suggests the leading cryptocurrency asset has yet to fully find its bottom for this market cycle.
Following on-chain analysis, Fractal, an advanced investment and on-chain data platform, was designed The BTC market is witnessing a continuous bleeding, but the real level has not been achieved yet. The platform’s analysis primarily focuses on two key metrics, which include BTC Net Unrealized Profit/Loss (NUPL) and BTC Delta Growth Rate (Market Cap vs. Realized Cap).
These signals suggest that the market is still struggling with excess supply and uncertainty, as evidenced by the ongoing decline in the price of BTC. With bearish signals from the two indicators, it is clear that confirmation of a true bottom may require extended data-driven validation or more time.
As seen on the chart, the net unrealized profit/loss The metric has begun to decline, indicating that unrealized profits are beginning to decline across the network. Despite the decline, the metric is still in positive territory. This means that market participants remain in profit rather than in loss.
The alphafractal highlights that true cycle bottoms have historically only occurred when the metric turns negative, entering full surrender mode. Meanwhile, BTC delta growth rate is already exhibiting negative momentum, signaling the end of speculative activity and the beginning of fundamentals. accumulation phase.
The possibility of a recession has intensified as the price of BTC has fallen.
After falling last weekend, the price of Bitcoin is now trading below the $90,000 mark again. According According to investment leader SwissBlock, recent price action has reinforced the market’s bearish outlook.
As the crypto king loses key support at the $89,200 level bitcoin risk The index is witnessing a steady rise, adding to the general bearish sentiment. However, the platform noted that Bitcoin bulls continue to hold a key line of defense at the $84,500 mark, which is currently serving as an immediate target for the downside. Swissblock has outlined two different scenarios that could play out in the upcoming sessions.
As for the bullish case, the platform predicts that if the $84,500 support holds, a liquidity sweep Could be at this point. At the same time, the risk index begins to cool, paving the way for high-confidence entries for long positions. Breaking the bearish outlook, Swissblock noted that a decline and consolidation below the $84,500 level is likely to lead to a deeper correction, which would target new lows below November levels with a primary target of $74,000.
Featured image from Pixabay, chart from tradingview.com
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