Bitcoin Bottom Found? Key Market Indicators Suggest the Bleeding Has Stopped
Bitcoin's brutal correction might finally be hitting its floor. On-chain metrics and derivatives data flash the first green shoots since the selloff began—just as Wall Street's 'smart money' starts circling.
Blood in the streets? More like discount hunting season.
Derivatives markets show open interest stabilizing while funding rates normalize—classic signs of capitulation. Meanwhile, the Bitcoin Fear & Greed Index claws back from 'Extreme Fear' territory for the first time in 47 days.
Retail got shaken out. Miners unloaded their bags. Now the only people left are diamond hands and hedge funds pretending they never doubted crypto (again).
Will it stick? Macro winds still blow cold, but for once, crypto's internal plumbing isn't clogged with leverage. That's when Bitcoin tends to surprise everyone—except the true believers who've seen this movie six times before.
BTC Reacts to Geopolitical Tensions
Last week, BTC started with a strong rebound and recovery from earlier lows. The asset reclaimed key support levels around its previous all-time high (ATH) of $109,900, marking a 4.7% gain from the weekly open. This was supported by a temporary pause in profit-taking activity and improving market sentiment.
However, things took a turn for the worse after tensions in the Middle East increased and Israel attacked Iran. BTC experienced a 7.33% peak-to-trough decline, losing much of its early-week gains amid heightened uncertainty in the markets. The cryptocurrency ended the week at 0.09% despite earlier gains.
“The swift reversal highlights the marketʼs fragility in the face of exogenous shocks, and underscores how quickly sentiment can shift even during strong trend conditions. Heading into this week, all eyes are on the macro newsflow and whether BTC can maintain support above the $103-105K region,” Bitfinex stated.
Is The Bottom In?
While global markets continue to react to the effects of ongoing geopolitical tensions, bitcoin is experiencing a spike in selling activity. This is evident in the Net Taker Volume, a metric that measures the balance between market buys and sells. The indicator has dropped to -$197 million, its most negative level since June 6, which suggests that traders are offloading BTC at market prices rather than waiting with passive bids.
Such low readings in Net Taker Volume, especially below -$160 million, have coincided with local BTC bottoms. This is because panic selling exhausts weaker market participants, allowing larger players to accumulate the asset.
One more reason for believing that BTC has hit its bottom for this decline is that the magnitude of this plunge closely aligns with the cycle median drawdown of roughly 7%, which is neither extreme nor anomalous. Analysts say this reflects a healthy consolidation phase during an ongoing uptrend rather than the onset of a deeper structural correction and that BTC is likely to recover soon.
