The Bitcoin market has seen a "flurry of sales" since mid-October, prompting a critical question among investors: has Bitcoin's price finally found its bottom? Drawing insights from a recent CryptoQuant post by pseudonymous pundit Sunny Mom, on-chain data offers a cautiously optimistic outlook, suggesting that a price bottom might be just around the corner.
On-Chain Indicators Hint at Imminent Turnaround
Mom's analysis relies on four distinct on-chain metrics to gauge the behavior of Bitcoin market participants. The Futures Taker Cumulative Volume Delta (CVD) over the past 90 days reveals a significant shift, with aggressive sell zones (typically in red) now moving towards neutral territory. This transition suggests that leveraged short positions, often held by the most speculative traders, are beginning to close out, reducing the immediate selling pressure from this influential segment. While the Spot Taker CVD still indicates ongoing selling from direct Bitcoin holders, the intensity of this selling is observed to be declining. Further bolstering the case for a potential rebound, the Bitcoin: Stablecoin Supply Ratio (SSR) has reached a historically low point. A low SSR implies a high volume of stablecoins available for purchase relative to Bitcoin's supply, traditionally signaling ample buying power waiting to enter the market and preceding significant price upturns. Additionally, the Adjusted Spent Output Profit Ratio (aSOPR) is currently hovering around 1.0, a critical break-even level that has historically acted as a reliable precursor to major price reversals for the flagship cryptocurrency.
Bitcoin's Current Market Position
As of this report, Bitcoin's price stands around $102,510, reflecting an increase of over 1% in the last 24 hours. This modest gain, combined with the confluence of positive signals emanating from the on-chain data, lends credence to the idea that the market may indeed be poised for a recovery phase.
