Analysts and investors alike have been attempting to call the bottom of Bitcoin’s ongoing downtrend ever since it first began in early-2018. In spite of this, BTC has shown no clear signs of forming a long-term bottom, as every rally has been subsequently followed by sell-offs.
Recent on-chain data, however, may come as a pleasant surprise to embattled investors, as it may signal that the cryptocurrency is close to forming a long-term bottom, which could be followed by a massive bullish reversal.
Bitcoin Struggles to Gain Decisive Momentum, But the Bottom May be Close
At the time of writing, Bitcoin is trading up over 1% at its current price of $7,570, which marks a notable surge from its recent lows of $7,000, but a slight retrace from its recent highs of $7,800.
BTC has been unable to garner any decisive momentum – in either direction – in the time since it bounced into the $7,000 region from its recent lows of $6,500, and analysts are largely expressing mixed sentiments with regards to which direction the cryptocurrency will head next.
It does appear that Bitcoin may be close to posting a massive reversal in the near-term, as on-chain metrics data from Glassnode points to the possibility that a long-term bottom is imminent.
“Weekly on–chain market observations: The bottom is close – and once it happens, the reversal will be strong. MVRV is consolidating towards 1, which historically has indicated the bottom of #Bitcoin market cycles. Patience is key,” the analytics group noted in a recent tweet.
Furthermore, this notion is also supported by the fact that Bitcoin’s SSR – which represents the stable coin buying power – is currently pointing to high buying power.
Glassnodes further spoke about this in a tweet, explaining that this is a good indicator of a bottoming market, and that the high SSR signals that the next reversal rally will have strength.
“SSR quantifies stablecoin buying power over #bitcoin. Currently, SSR is indicating high buying power. This is good in a bottoming market. The more capital waiting on the sideline, the stronger the reversal once investor sentiment turns bullish again,” they noted.
While considering both of these factors, it does appear that Bitcoin’s on-chain metrics are pointing to the possibility that it will see significantly further gains in the near-term, with its recent lows potentially marking a long-term bottom.