Key Points
- Bitcoin’s market price is yet to reach the bottom, as suggested by the Long/Short Ratio.
- Despite the market’s volatility, Bitcoin long-term holders remain optimistic about a price rise.
Bitcoin experienced a 0.88% drop, continuing its consolidation between $94k and $100k. The market is still in anticipation of reaching its bottom.
Market Bottom Yet to be Reached
According to Alphractal’s analysis, the market price bottom is still not attained. This is based on the Long/Short Ratio crossover, which historically indicates market bottoms. Such a crossover suggests that investors have more confidence in Bitcoin than altcoins. However, no crossover has occurred since September 2024, implying that investors are more bullish on altcoins.
Bitcoin’s Market Projections
Despite the inclination towards altcoins, Bitcoin holders and traders remain optimistic. The Coin Days Destroyed (CDD) metric has significantly declined, indicating that long-term holders are not selling their Bitcoin. This suggests an expectation of a price increase.
The market sentiments are further confirmed by the surge in the total unspent of dormant coins, reaching 18.1 million. This suggests that long-term holders continue to hold their Bitcoin.
Moreover, Bitcoin’s Mayer Multiple has dropped to 1.25, indicating that Bitcoin is trading 25% above its 200DMA, signaling bullish momentum. This suggests that there is room for more upside movement for Bitcoin.
Despite the market not reaching its bottom or top, Bitcoin long-term holders remain optimistic about a price rise. If this trend continues, Bitcoin could potentially reclaim $99,500 and even attempt to move above $100k again. However, if macroeconomic conditions remain unpredictable, Bitcoin could possibly drop to $94k.
In the meantime, altcoins are expected to continue trading sideways as buyers reenter the market every time prices drop.