3 Signals Suggesting the Bitcoin Bottom Is Approaching

3 Signals Suggesting the Bitcoin Bottom Is Approaching

Bitcoin (BTC) has been on a downward trend for several months now, but there are three signals that suggest the bottom may be approaching. 1. The BTC NVT ratio has reached the oversold zone. The NVT ratio is a measure of the network value of Bitcoin relative to the transaction volume. When the NVT ratio is low, it indicates that Bitcoin is undervalued. The NVT ratio has recently fallen below 45, which is considered to be the oversold zone. This suggests that Bitcoin may be undervalued at current prices. 2. The Bull-Bear Market Cycle Indicator has entered the Bearish zone for the first time since January 2023. The Bull-Bear Market Cycle Indicator is a technical indicator that measures the relative strength of the bulls and bears in the market. When the indicator is in the Bearish zone, it indicates that the bears are in control and that a further decline in prices is likely. 3. BTC has formed a bullish pattern. The BTC/USD chart presents a falling wedge pattern starting at the previous cycle top. A breakout above the upper trend line of this falling wedge could signal a trend reversal. If a daily candle close above the wedge's lower trend line around $20,000 is observed, this could also indicate the bottom is in. Of course, it is important to note that these are just three signals, and there is no guarantee that the bottom is in. However, these signals do suggest that the market may be turning around, and that it may be time to start thinking about buying Bitcoin again.