Bitcoin Price Decline Triggers Key On-Chain Signals and Fear

Over the past week, Bitcoin prices fell from around $115,000 to below $105,000 amid a market correction. Analyst Burak Kesmeci highlighted several on-chain developments during this decline, indicating current market conditions and potential price movements.

Key On-Chain Developments

The Fear and Greed Index entered "extreme fear," typically observed near market lows.
The Net Unrealized Profit/Loss (NUPL) dropped below 50%, shifting sentiment from optimism to worry.
Negative funding rates in derivatives markets indicate dominance of short positions.
MicroStrategy's shares fell below $300, yet the firm added 220 BTC, increasing its total to 640,251 BTC.
Advanced NVT Signal showed deep oversold conditions, historically linked with market bottoms.
Active Address Sentiment Indicator suggests a price drop disproportionate to network activity, hinting at potential recovery.

Kesmeci suggests that these signals point to a potential local bottom and strong accumulation opportunities.

Bitcoin Price Overview

Currently, Bitcoin trades at $106,970, reflecting a 0.29% decline in the last 24 hours and an 8.32% monthly loss. Despite challenges in achieving expected gains for "Uptober," analysts forecast a rebound to $124,172 within five days.