Bitcoin has shown a stable slight decline over the past 24 hours, with multiple indicators suggesting a rebound is imminent.
In the past 24 hours, Bitcoin (BTC) has maintained a relatively stable performance, although the price has seen a slight decline of 0.84%, which clearly indicates obvious signs of market weakness.
However, several key indicators currently suggest that a rebound for Bitcoin may be just around the corner, with the possibility of continued upward momentum.
Has Bitcoin reached the bottom?
The seller ratio, a key indicator, aligns with bullish expectations; this ratio compares the spending amount of investors over a specific period to Bitcoin's actual market value.
Based on past experience, when this ratio drops to the 0.1% area or even lower, it often signals that Bitcoin's price is about to start a significant increase.
Currently, the seller ratio of Bitcoin is at 0.086%, which indicates that Bitcoin is likely to regain upward momentum in the short term.
Additionally, the adjusted spent output profit ratio (aSOPR) has recently dropped below 1, reaching 0.99, further strengthening the bullish market outlook.
An aSOPR below 1 indicates that traders are selling Bitcoin at a loss.
Generally speaking, selling at a loss tends to drive market prices up, as investors accumulate Bitcoin at discounted prices.
Although these indicators are showing bullish trends, suggesting that a rebound could come at any time, traders may still be waiting for the most suitable buying opportunity.
The Market Value to Realized Value (MVRV) momentum (70 days) indicator can help assess this excellent opportunity.
When MVRV exceeds its 70-day moving average, Bitcoin's price typically experiences a significant rise.
If this situation occurs, Bitcoin is likely to start consistently creating higher price peaks, thereby enhancing its overall monthly increase.
According to data from CoinMarketCap, Bitcoin's current monthly increase is 4.32%.
Market activity remains sluggish
Current Bitcoin market activity continues to be sluggish, with trading volume in a decreasing state, indicating a lack of momentum to push Bitcoin's price upward.
At the time of writing, the number of Bitcoin transfers has seen a significant decline, currently around 441,000 BTC, which is a noticeable drop from previous highs.
If market momentum continues to weaken, the likelihood of Bitcoin achieving sustained increases becomes very slim.
For Bitcoin to achieve a strong upward trend, both trading volume and price must rise in sync.
Once a divergence occurs between trading volume and price, it indicates that market momentum is weak, making a rebound less likely.
