An analyst from cryptocurrency analysis firm CryptoQuant recently suggested that Bitcoin may have formed a local bottom.
Over the past three weeks, Bitcoin has experienced a correction of approximately 15%, dropping from $70,000 to $60,000.
According to the analyst, after a significant correction yesterday, signs of a potential local bottom are starting to emerge:
Futures Market: Open positions decreased by approximately $3 billion in the last three weeks, with mainly long liquidations taking place. Funding rates for permanent contracts approached zero. This indicates a greater balance between buyers and sellers, leading to a healthier and less overly optimistic price structure.
Short-Term Wallets: The price moved lower, touching the realized price of short-term wallets at $62.6K. Currently, short-term wallets are experiencing slightly negative average profitability. Historically, this point has served as support for local corrections during uptrends.
An important factor affecting price movements in recent months has been US macroeconomic data. According to the analyst, uncertainty about the future of American monetary policy affects investors' risk appetite. On Thursday, the market will watch GDP and initial jobless claims data. Inflation data (PCE) is expected on Friday, which can determine market sentiment in the short term.
According to the analyst, the current structure points to a possible local bottom, providing a glimmer of hope for investors in the turbulent cryptocurrency market.
*This is not investment advice.