Has Bitcoin hit bottom?

Since the end of last week, Bitcoin has seen a significant increase in its price, indicating that it may be reaching new lows.

The cryptocurrency rose to $67,000, with it currently fluctuating around $66,000.

This rebound comes shortly after Bitcoin holders recorded their biggest losses of 2024.

CryptoQuant analysts reported that online data shows positive near-term momentum for Bitcoin, but this momentum may not be sustainable given the weak growth in stablecoin liquidity and demand for Bitcoin.

Indicators of reaching the bottom:
CryptoQuant identified losses worth $2.5 billion for Bitcoin holders in just two days last week, before the current recovery.

This significant decline may indicate sellers capitulating, which is usually associated with prices bottoming out.

The market also witnessed a decrease in selling pressure from large entities such as the German government and the “Mt.Gox” platform, as the former finished selling its bitcoins and the latter began distributing its holdings to creditors.

Unrealized profit margins for Bitcoin traders have reached their lowest levels since the collapse of the FTX platform in November 2022, raising the possibility that prices will bottom.

This number reached -17% last week and is currently at -5.7%.

Valuation indicators point to positive momentum with prices likely to continue rising, as CryptoQuant's P&L indicator has bounced from its 365-day moving average, indicating the possibility of finding a local bottom.