Bitcoin could be establishing a local floor after a 35% correction from its all-time high of 126,200 dollars. According to VanEck analysts and on-chain data experts, there are three Bitcoin market bottom signals suggesting an exhaustion of selling pressure. These technical and macroeconomic indicators point to the digital asset entering an accumulation phase necessary for a significant rebound.
The first key indicator is the weekly Stochastic RSI, which has recently climbed out of oversold levels. This technical pattern has preceded major historical rallies in 2019 and 2022 in a consistent manner. Likewise, a bullish divergence is observed on the three-day chart where momentum is strengthening. So the exhaustion of sellers seems to be imminent given the current stabilization of the market price today.
On the other hand, miner capitulation presents itself as an extremely bullish contrarian signal at this moment. Matt Sigel, analyst at VanEck, noted that the 4% drop in hashrate is a positive event. Periods of hashrate compression usually anticipate returns significantly over the following six months for savvy investors. In this way, mining profitability could improve very soon if the price recovers higher trading levels.
Macroeconomic liquidity as the main driver of the next bullish recovery
Furthermore, the National Financial Conditions Index (NFCI) shows a downward trend that favors the sector. A decline in this indicator has historically preceded Bitcoin rallies within a six-week timeframe. The injection of liquidity through the rotation of Treasury securities could act as the definitive catalyst very soon. So global financial conditions are becoming favorable for risk assets such as criptocurrencies at this time.
Nevertheless, the Federal Reserve plans moves that emulate the liquidity interventions of the year 2019. This scenario allowed Bitcoin to rise 40% in a relatively short period of time back then. It is also relevant to note that large holders are accumulating coins at the fastest pace in thirteen years. Therefore, the market structure suggests a solid recovery that could materialize during the first quarter of next year.
Is the current price level the last institutional buying opportunity?
However, bearish views persist, projecting further declines toward the 70,000 dollar zone. Despite these doubts, bottom indicators tend to be more accurate than general pessimistic sentiment. The market tends to ignore positive signals during the final phases of a deep and painful correction. Therefore, the analysis of hard data provides a much clearer vision regarding the immediate future of the price.
To conclude, the combination of technical momentum, miner capitulation, and macro liquidity projects an optimistic short-term scenario. Although volatility may persist, fundamentals suggest that the worst has passed for the market’s leading digital asset. Therefore, the focus of investors should be on the confirmation of the bullish trend during the coming days. The path toward recovery seems to be paved by on-chain factors that cannot be easily ignored.
