Bitcoin Price Hits Bottom – Has It Already Hit or Do Traders Need to Wait a Little Longer?

• Bitcoin holders’ losing trends show that bulls could be optimistic about recovery
• If historical trends repeat, a deeper price correction may be expected.

Bitcoin [BTC] The cryptocurrency has faced two rejections from the short-term range highs of $58.8K in two days. After losing the psychological support at $60K last week, sentiment across the market has been fearful.

But there is some hope for a recovery. At the time of writing, the bullish accumulation trend score suggested that buyers were ready, but other metrics suggested that more pain may be due.

source: Axel Adler on X

in Posted on Xcrypto analyst Axel Adler He drew attention to the current average losses for short-term bondholders. While the losses match those of June 2023, they were much smaller in magnitude than the pain seen in 2021 or 2022.

Although it indicated a potential local bottom, it also showed that traders and investors should be prepared for the worst-case scenario of a sharp price drop on the charts.

Signs That Bitcoin's Local Lows Are Behind Us

source: CryptoQuant on X

CryptoQuant noted that the trader’s profit/loss margin was -17%. This was at the same level as the market bottom over the past two years, reinforcing the idea that Bitcoin has a higher chance of rebounding than of falling.

source: Ki Young Joo on X

According to the founder and CEO of CryptoQuant, Ki Young Joo Whales tend to use leverage at cyclical bottoms, making markets overleveraged and forcing prices back down.

At the time of publishing, whales were not overleveraged, which could have paved the way for a deeper correction below the $50,000 level.

Traders felt humbled after trying to catch the breakout and all-time high.

source: Crypto Quant

From the last week of May to July 3, the estimated leverage ratio on exchanges rose rapidly. During that time, the price of Bitcoin was hovering around $67,000 to $69,000. As the price fell below $66,000, the leverage ratio rose again, indicating that traders were trying to exploit greed.

Over the past week, their hopes have been dashed by the continued decline in Bitcoin. The leverage ratio has also decreased, which could be beneficial for the market.

Read about Bitcoin [BTC] Price forecast 2024-2025

Overall, it is difficult to say with certainty that Bitcoin has formed a bottom.

several Bottom signals There have been strong flashes and seller pressure may start to ease. However, investors should still have a plan of action in case the price drops below $50,000.