Bitcoin Stabilizes Above $80,000 Amid Speculation of Local Bottom

Bitcoin (BTC) recently stabilized above the $80,000 mark after a significant downturn, leading to speculation about a potential short-term bottom and the possibility of an upward trend.

Market Dynamics

On-chain analysis by CryptoQuant suggests institutional redistribution and structural weakness in the market, with signs of a possible rebound.
Large whale investors have been selling their holdings, as evidenced by cohorts holding more than 10,000 BTC and those with 1,000 to 10,000 BTC.
This behavior indicates institutions are reducing risk exposure through profit-taking, increasing market supply.
Retail investors also show net selling trends, with wallets holding 0 to 1 BTC and 1 to 10 BTC offloading rather than accumulating.
Mid-sized holders (100 to 1,000 BTC) are acquiring steadily, while the 10 to 100 BTC group is consistently accumulating.

Bitcoin

Potential Rebound

Post a recent 11-day selling spree, Bitcoin rebounded above $89,000, hinting at a possible local bottom.
Despite positive momentum, confirmation of a trend reversal depends on continued accumulation by key investor cohorts.
The 1,000 to 10,000 BTC group continues distribution, complicating trend reversal confirmation.

Technical Indicators

Analyst Ash Crypto notes a hidden bullish divergence on the weekly timeframe, indicating easing selling pressure and stabilizing momentum.
If confirmed, this divergence often precedes a strong continuation rally, suggesting BTC may be poised for an upward trajectory.

Bitcoin

Currently, Bitcoin trades at $87,150, approximately 30% below its all-time high of $126,000, erasing gains across multiple time frames, including a 9% year-to-date drop.