 ▲ Bitcoin (BTC) |
Bitcoin (BTC) has laid the groundwork for a full-fledged trend reversal after the prolonged wave of panic selling by key holders—who had struggled amid deteriorating profitability and sustained selling pressure—has subsided, forming a strong price floor.
According to crypto-focused media outlet BeInCrypto on Feb. 17 (local time), although Bitcoin’s price has recently moved sideways, the imbalance between supply and demand is rapidly easing as the stop-loss selling that had weighed on the market has largely been exhausted. In particular, the decline in so-called capitulating holders—investors who had been suffering while holding assets below cost—suggests that downward pressure has reached its peak. On-chain data shows that assets are actively changing hands within the Bitcoin network, with buying forces gradually regaining control of the market.
Market analysts are paying close attention to key indicators such as the Market Value to Realized Value (MVRV) ratio nearing historic lows. The MVRV metric aligns with patterns typically seen just before major Bitcoin rebounds in the past, indicating that favorable conditions are emerging for long-term investors to accumulate again. The current sideways movement around key support levels is interpreted as a phase of energy consolidation, increasing the likelihood of a strong upward breakout in the near term.
Improving profitability among Bitcoin holders is also positive, as it reduces short-term selling incentives. Technical indicators, including the Relative Strength Index (RSI), have already exited oversold territory and begun forming a gentle upward curve, which is being viewed as a signal of recovering investor sentiment. Despite broader uncertainty in the digital asset market, Bitcoin is demonstrating independent resilience and is reinforcing its position as the leading asset capable of driving a rebound in the altcoin sector.
The recovery in mining profitability is also contributing to market stabilization. Selling pressure from miners that persisted after the halving has been sufficiently absorbed by the market, significantly easing concerns over excess supply. This structural cleanup within the Bitcoin ecosystem creates optimal conditions for a sharp, inelastic price surge should external positive catalysts emerge. Continued inflows through spot Bitcoin ETFs from institutional investors are also providing strong downside support.
Bitcoin now appears to be in the final preparatory stage before attempting to break through key technical resistance levels. The point at which selling by major holders fully halts and new liquidity flows in is expected to mark an inflection point that accelerates price gains. Market participants are closely watching whether Bitcoin can successfully reclaim key psychological resistance levels and begin a rally toward new highs. The consolidation of buying forces after confirming stable support is likely to be the decisive factor shaping the broader market outlook.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*