 ▲ Bitcoin (BTC), silver/AI-generated image |
As Bitcoin (BTC) enters a so-called Deep Conviction Zone that is pushing investors’ patience to the limit, smart money continues to accumulate quietly while retail investors, gripped by fear, are exiting the market.
According to crypto-focused outlet NewsBTC on February 8 (local time), digital asset analyst Marcus Corvinus assessed that Bitcoin is currently trading in one of the deepest bearish phases in its history, known as the Deep Conviction Zone. He explained that the current market phase does not loudly signal a buying opportunity but rather tests investors’ nerves, characterized by sideways movement or gradual declines that frustrate traders. While price action in the Deep Conviction Zone can appear bearish, it is in fact a period when strong holders quietly absorb supply amid prevailing fear.
The Market Value to Realized Value (MVRV) Z-score for Bitcoin has fallen to around 0.52, marking its lowest level since October 2022. This is similar to levels seen when Bitcoin was trading near $29,000, indicating that market overheating has fully cooled. The massive liquidation of approximately $2.56 billion in the crypto derivatives market on February 6, which sent Bitcoin plunging toward the $60,000 level, served as a decisive event in flushing out unhealthy leverage from the market.
Corvinus emphasized that trend reversals never begin with flashy rallies or loud promotion. Instead, change starts with subtle signals visible only to patient observers, such as waning selling pressure, a stabilization phase, and small rebounds. He noted, “The market always plants doubt before it delivers rewards, and historically, bottoms have quietly formed when everyone has lost conviction.”
Bitcoin is currently trading around $69,229, down roughly 12% from its weekly high of $79,280, as it searches for direction. In contrast to retail investors engaging in panic selling or remaining on the sidelines, smart money, including institutional investors, views prices below $60,000 as an attractive entry point and is expanding positions with a long-term perspective. This supply-demand imbalance is expected to lay an important foundation for strengthening the market’s underlying resilience.
Bitcoin remains in a phase of structural improvement, filtering out speculative players and increasing the share of genuine value investors through a painful correction process. The Deep Conviction Zone does not last forever, and when the correction concludes, those who endured fear and stayed in the market stand to reap the greatest rewards. Investors should focus less on short-term price fluctuations and instead pay attention to stabilization signals from on-chain data as they prepare for the next cycle.
*Disclaimer: This article is for investment reference only and does not take responsibility for any investment losses based on its content. The information should be interpreted solely for informational purposes.*