Did Bitcoin Just Bottom Out? What the Data Says About a Rebound
Data suggests Bitcoin may be forming a bottom following heavy selling pressure, indicated by high realized losses and bearish options skew.Summary
Bitcoin experienced significant selling pressure, dropping near the $85,000 zone before a slight recovery, which analysts suggest might signal a market bottom due to widespread holder capitulation. Indicators like the 25-delta skew show traders are increasingly buying downside protection across all maturities, a pattern often seen near cyclical bottoms. Furthermore, realized losses among Bitcoin holders have surged to levels comparable to the FTX collapse, driven primarily by short-term holders panic selling, indicating that marginal demand is exhausted. This aggressive deleveraging historically precedes a recovery as long-term holders may begin accumulating. At the time of writing, BTC was trading around $85,979, defending the $85,000 level. If this bottom holds, Bitcoin could rebound toward $86,822, $89,800, and potentially $95,000; however, a break below $82,503 could invalidate this outlook and lead to a drop toward $80,000.
(Source：BeInCrypto)