 ▲ Bitcoin (BTC) |
Bitcoin (BTC) has fallen to the $69,000 level and is undergoing a correction phase, but technical indicators suggest the market has already entered the early stages of forming a bottom.
According to Yahoo Finance on February 10 (local time), Bitcoin’s price has retreated from its recent peak to around $69,000. However, on-chain data and market sentiment indicators suggest that the current correction is likely part of a bottoming process within a broader long-term uptrend.
Market analysts note that the Bitcoin Market Value to Realized Value (MVRV) ratio has approached historical lows, indicating that downward pressure is gradually easing. The slowdown in selling by large investors and the capitulation of retail investors align with typical signs historically observed when a bottom forms during bull markets.
Institutional capital inflows through spot Bitcoin ETFs remain solid, serving as a key support for the price floor. In particular, holdings by major asset managers including BlackRock continue to increase, intensifying supply constraints in the circulating market and laying the groundwork for a potential price rebound driven by supply-demand imbalance.
According to Santiment data, market participants’ fear levels have reached extremes, which contrarian investors interpret as a strong buy signal. Signs that institutions are absorbing stop-loss driven selling in the current range are reinforcing expectations that the downtrend is nearing its end and that a new upward wave fueled by improving supply-demand dynamics may begin.
Despite heightened short-term volatility, the cryptocurrency market appears to be entering a structural bottoming phase, building energy for a rebound. As buying interest is being confirmed around the key support level of $69,000, a full-fledged recovery is expected once excessive leveraged positions in the futures market are unwound.
*Disclaimer: This article is for investment reference only and we are not responsible for any losses resulting from investment decisions based on it. The content should be interpreted for informational purposes only.*