Bitcoin Rebounds From Support Is a Bottom in Sight as Whales Spot Buy Zones Early

▲ Bitcoin (BTC)

As analysis suggests that Bitcoin’s (BTC) market value has fallen to a historic floor compared with its realized value, expectations among investors for bargain hunting at the bottom are rising.

According to crypto-focused media outlet NewsBTC on February 7 (local time), citing data from on-chain analytics firm Santiment, Bitcoin’s market value to realized value ratio has dropped into the 0% to 10% range. This indicator measures the average return of all current Bitcoin holders, and a decline to this range indicates that most investors are earning little profit or are hovering around their cost basis.

Historically, when Bitcoin’s market value to realized value ratio has entered the 0–10% range, prices have tended to form a strong support level and rebound. Santiment analyzed that this is “a point at which investors reach a psychological capitulation phase and selling pressure declines sharply.” The current on-chain data trend closely resembles past patterns seen during Bitcoin price bottoming processes.

While fear among retail investors has peaked due to the recent decline in Bitcoin prices, the sharp drop in this indicator may instead present an attractive entry opportunity for whale investors. Experts assess that the current level suggests short-term downside pressure on Bitcoin is nearing its final stage. If buying interest gains momentum, Bitcoin is expected to break out of its current consolidation range and secure strong upward momentum.

Bitcoin has seen a slight rebound over the past 24 hours, continuing attempts to reclaim key support levels. Expectations are spreading across the market that an exit from the bottom range of the market value to realized value ratio could mark the starting point of a price rally. Changes in the number of active addresses and transaction volume within the Bitcoin network are being used as key indicators to determine future price trends.

*Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.*

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