Is Bitcoin Near a Bottom? Early Indicators Point to Yes (Bitfinex Alpha)

Bitfinex Alpha reveals that selling pressure has decreased, and Bitcoin is approaching its lowest point in the cycle.

The recent downtrend in the market has left many Bitcoin investors and market enthusiasts in a state of confusion. This is because forecasters and some factors point to a further downtrend, while some claim that the world’s leading cryptocurrency is in a strong support zone.

Bitcoin clearly saw a significant price rebound last week, jumping about 15% to exceed $93,000. However, the move was short-lived, as it fell by $84,000 on Monday amid heavy selling by many coin holders, making for a difficult start to the new week.

Reduction and surrender

Taking into account factors such as surrender, deleveraging, and seller exhaustion, the latest version of Bitfinex Alpha suggests Bitcoin is very close to the bottom, hitting its lowest point of this cycle before recovering to hit new highs.

One factor that points to a bottom is aggressive deleveraging. There is no doubt that thousands of speculators and leveraged traders were forcibly expelled from the market, starting with the October 10th crash that led to the liquidation of more than $19 billion.

After this influx of risky traders, the cryptocurrency market is expected to become more stable and healthier for investors and holders in the long term. This also aligns with a recent prediction from Fundstrats’ Tom Lee, who… male That once the market completes this flow, it could reach new highs.

In addition to aggressive deleveraging, short-term shareholder capitulation is another factor that points to a bottom for Bitcoin. Many retail traders, weekend FOMO buyers, newbies and nervous investors reacted emotionally to the market drop, panic selling their holdings in shock.

Therefore, adjusted realized losses are achieved by facility receipt A peak of over $400 million, surpassing losses during previous major market lows. This rate of losses indicates that capitulation is coming to an end, and once the selling pressure is gone, Bitcoin price stabilizes.

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Seller exhaustion

A close look at the Bitcoin price chart over the past few days indicates seller fatigue, as it is filled with many small candles, indicating that the panic and fear have almost been extinguished, and selling pressure has decreased. Hence, the conclusion is that Bitcoin is approaching the bottom.

At the same time, some institutional investors have done so Don’t miss The downtrend obliterates their bullish expectations. This is evident in the massive four-day series of inflows into US-listed Bitcoin exchange-traded funds (ETFs).