US-based investment firm VanEck stated that Bitcoin may be approaching the final stages of its current downtrend.
In a recent analysis, VanEck noted that Bitcoin’s decline from a peak of approximately $125,000 to levels as low as $60,000 is consistent with the traditional cyclical bear phase seen in the post-halving period.
In this context, VanEck notes that signs of exhaustion are appearing in the current bear season in Bitcoin, and some indicators are turning positive again.
A Remarkable Chart in the Company’s GEO Indicator!
VanEck analyzed the GEO (Global Liquidity, Ecosystem Leverage, On-Chain Activity) framework, which it uses to evaluate the Bitcoin market.
According to the company’s analysis, the framework consists of three signals, two of which are at a neutral level. The other signal, the ecosystem leverage indicator, is said to exhibit a constructive outlook.
In context, VanEck stated that these indicators, when considered together, signal the formation of cyclical bottoms in Bitcoin and could provide justification for investors to begin gradually increasing their positions.
Not a Definitive Bottom!
However, the company notes that it cannot be definitively said that Bitcoin has bottomed out.
According to VanEck, Bitcoin is in a traditional bear phase associated with its four-year halving cycle. In this context, the company argues that the sharp decline experienced in the current cycle is consistent with the historical pattern rather than indicating a structural breakdown in the Bitcoin market.
Finally, VanEck added that market cycles are based on past behavior and there is no guarantee that they will repeat themselves in the same way in the future.
*This is not investment advice.
