Bitcoin Bounce Sparks Bottom Hunting Among Analysts
By Aboki Forex —
Bitcoin's recovery from last week's dip below $60,000 has traders and analysts searching for signs of a market floor. The world's largest cryptocurrency fell to $59,100 before rallying back to around $63,000.
Some experts point to familiar signals that have marked past bottoms. These include widespread pessimism, weak fund flows, and a lack of clear catalysts for recovery. Geoffrey Kendrick, global head of digital assets at Standard Chartered, believes the worst may be over. He cites easing geopolitical tensions and the possibility that selling related to the SpaceX IPO has ended.
Kendrick argues that some Bitcoin ETF holders sold to free up cash for the SpaceX offering. That contributed to heavy outflows from spot Bitcoin ETFs. Institutional demand remains weak, and some analysts warn of another leg lower.
Other analysts look at on-chain data. CryptoQuant notes that Bitcoin now trades just 9% above its realized price. This gap has historically narrowed near major bear-market lows. Vetle Lunde at K33 Research points out that over half of Bitcoin's circulating supply is now held at a loss. That condition has often preceded market bottoms as profit-taking pressure fades.
Still, caution remains. Lunde warns that Bitcoin could see a final drop before a durable recovery sets in. The market is far from an all-clear, but the search for a bottom is heating up.