3 Bitcoin Signs Pointing to a BTC Market Bottom
Bitcoin may be near a local bottom after a drop of over 35% from its all-time high, supported by technical and on-chain signals. Key momentum indicators, such as the weekly Stochastic RSI turning up from oversold conditions, and bullish divergence on the three-day chart, point towards seller exhaustion, similar to patterns seen at past market lows. Bitcoin’s hashrate has declined 4% recently, which analysts interpret as a signal of miner capitulation, historically preceding price recoveries; since 2014, such hashrate drops have often been followed by positive returns over 90- and 180-day periods. Improving liquidity conditions, as measured by a declining National Financial Conditions Index (NFCI), also suggest a potential rally in four to six weeks; previous NFCI tops have led Bitcoin rallies by this timeframe. A possible catalyst is the Federal Reserve's planned shift to Treasury bill purchases, resembling past liquidity injections that coincided with significant Bitcoin rallies. Despite these bullish signals, some market participants expect further declines, with price targets as low as $25,000.
