As the Bitcoin market continues to experience a wave of sales, which began in mid-October, the latest on-chain data paints a rather optimistic picture for the future of the cryptocurrency. The question is – has Bitcoin hit bottom?
Is a BTC price reversal imminent?
In a recent Quicktake post on the CryptoQuant platform, a cryptocurrency critic with the pseudonym Sunny Mom subscriber A downward formation of the Bitcoin price may be just around the corner. Sunny Mom’s post was based on four different on-chain metrics, all of which look at the behavior of Bitcoin market participants.
The first is the Futures Taker CVD (Cumulative Volume Delta, 90 Days) metric, which helps track the net difference between strong buy and sell volumes (referred to as taker orders) in the Bitcoin futures market over the past 90 days.
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According to the online reviewer, the most dominant selling areas (in red) are turning into neutral areas. This means that leveraged short positions (usually held by the more fearful and aggressive Bitcoin market participants) are slowly taking their exits, indicating the weakness of these speculative hands.
Next, the on-chain analyst pointed to data from the Spot Taker CVD metric (cumulative volume delta, 90 days). Although the number of speculative sellers is declining, spot CVD prices still appear to be in the red. A “red” reading on this meter typically indicates that Bitcoin Owners are still selling Their coins.
Another interesting event is that the bitcoin:stablecoin supply ratio (SSR) has fallen to its lowest level. For context, this metric measures the ratio between the supply of Bitcoin and the supply of stablecoins (such as USDT and USDC).
A high SSR indicates that there are fewer stablecoins compared to Bitcoin. As an extension, it suggests that there is less purchasing power to buy Bitcoin in order to push its price higher. On the other hand, a lower SSR indicates a relative abundance of stablecoins compared to the leading cryptocurrency, indicating a potential greater purchasing power in the Bitcoin market.
When examining past price action, it is clear that periods in which the SSR is “significantly low” are often preceded by significant bounces in major cryptocurrency prices. If history is anything to go by, the analyst concluded that we might as well be Set for another recoveryAs the SSR metric is currently hovering around a historic low.
Finally, Sunny Mom explained that data from the Adjusted Output Outlay Profit Ratio (aSOPR) also supports the general speculation of an imminent price bottom. Currently, the aSOPR reads around 1.0 – a level whose April 2025 breakout preceded a major price reversal.
Bitcoin price at a glance
As of this writing, Bitcoin’s price is around $102,510, reflecting an increase of more than 1% over the past 24 hours.
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Featured image from iStock, chart from TradingView
