 ▲ Bitcoin (BTC) |
Analysis suggests that the selling pressure from investors that has weighed on Bitcoin (BTC) has reached a critical threshold and effectively entered an exhaustion phase, raising expectations for a strong price rebound.
According to cryptocurrency-focused outlet Cointelegraph on February 26 (local time), market analysts believe that capitulation selling among Bitcoin investors has largely subsided, significantly weakening the downward pressure that had been constraining the market. On-chain data indicates that selling from long-term holders has noticeably declined, while whale activity aimed at buying the dip has increased. Analysts assess that the current exhaustion of selling momentum provides an optimal environment for a potential trend reversal.
The Market Value to Realized Value (MVRV) ratio is cited as a key indicator showing that Bitcoin is currently trading in a historically undervalued zone. Market analytics firm Santiment explained that a substantial portion of Bitcoin’s supply remains locked in unspent transaction outputs (UTXOs), suggesting that investors are opting to hold rather than sell at current price levels. Notably, Bitcoin reserves on exchanges have fallen to their lowest levels in years, significantly reducing the risk of a potential sell-off shock.
Ongoing demand from institutional investors is acting as a defensive barrier, reinforcing Bitcoin’s downside support. Capital inflows through U.S. spot Bitcoin ETFs continue steadily despite weakened retail sentiment, rapidly absorbing circulating supply in the market. Experts predict that as this supply-demand imbalance intensifies, the tipping point for upward price pressure will arrive sooner.
Although overall sentiment indicators in the digital asset market remain subdued, experts characterize the situation as a contrarian investment opportunity. With sellers’ momentum largely exhausted, even modest buying pressure could trigger a sharp price surge. Market participants are preparing to interpret a decisive breakout and consolidation above key short-term resistance levels as confirmation of a trend reversal.
Bitcoin now appears ready to end its prolonged downtrend and enter a new phase of price discovery. On-chain data and macroeconomic factors are converging to strongly support a long-term bullish scenario. Investors worldwide are closely watching to see when the Bitcoin market, now freed from heavy selling pressure, will begin its run toward reclaiming previous all-time highs.
Disclaimer: This article is for investment reference purposes only and assumes no responsibility for any investment losses incurred based on its content. The information provided should be interpreted for informational purposes only.