6 hour ago
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Bitcoin Mean Reversion Oscillator Shows Possible Bull-Market Bottom Signal
Bitcoin is currently struggling around the $90K mark amid intense selling pressure and market fear. Despite this, key on-chain metrics suggest that the correction phase may be nearing its end.
- The Mean Reversion Oscillator has printed its first green oversold bar in months, historically indicating a potential macro bottom or an upcoming significant rebound.
- This indicator suggests strong hands are absorbing supply as Bitcoin consolidates above $90K, despite liquidations and structural fear.
Historical Bottom Signals
- The Mean Reversion Oscillator's current reading aligns with historical patterns seen during bull market retracements, suggesting a cyclical bottom formation.
- NVIDIA’s strong earnings have bolstered confidence in U.S. equities, which could positively impact higher-risk assets like crypto by improving liquidity and sentiment.
Testing Support Levels
- Bitcoin is attempting to stabilize near $92,000 after a recent decline from $100K, showing reduced selling momentum.
- The 50-day and 100-day moving averages have turned downward, but the broader bullish cycle remains intact with the 200-day MA below the current price.
- Volume profiles indicate panic selling is cooling off, often preceding a relief bounce even if volatility continues.
Overall, while short-term sentiment remains fragile, underlying indicators point towards potential stabilization and recovery for Bitcoin.