Volatility has been on the rise in the cryptocurrency market, impacting both alternative coins (altcoins) and Bitcoin. Bitcoin’s price has been moving within a range of $94k to $100k, showing a sideways trend amid turbulent market conditions, causing speculation about whether the market has hit rock bottom.
Uncovering Why the Market is Yet to Reach the Bottom
An examination by Alphractal indicates that the market has not reached its lowest point, pointing to a Long/Short Ratio crossover as evidence. Traditionally, market bottoms are associated with Bitcoin’s Long/Short ratio surpassing the average Long/Short Ratio of altcoins.
A Long/Short Ratio of 1.48 for Bitcoin compared to around 2.55 for Altcoins suggests no crossover has taken place since September 2024. This indicates that investors are still more positive on altcoins than Bitcoin, keeping the market from reaching its bottom.
Insights from Bitcoin’s Performance Charts
While investors show a preference for altcoins, BTC holders and traders remain optimistic. The prevailing market conditions suggest that Bitcoin will continue to rise with occasional corrections leading to ongoing consolidation.
CryptoCrypto highlighted a decrease in Bitcoin’s Coin Days Destroyed (CDD) over the past week, signaling reduced selling activity by long-term holders, indicating an anticipation of price appreciation.
The increased total unspent dormant coins reflect a similar sentiment, with a surge to 18.1 million indicating sustained holding by long-term holders.
Moreover, the decrease in Bitcoin’s Mayer Multiple to 1.25 signifies a bullish trend, as it currently trades 25% above its 200-day moving average, indicating potential for further upward movement.
Overall, while the market is yet to hit its low or high points, indications suggest a probable upward trajectory for Bitcoin. Long-term holders express confidence in future price hikes, with expectations of reclaiming $99,500 and testing the $100k level once more.
Given recent fluctuations, a drop to $94k may occur again should macroeconomic factors remain uncertain, but buyers are expected to reenter the market during such downturns.