Bitcoin’s On-Chain Strength Signals Potential Rally Amid Muted Investor Sentiment

• Bitcoin’s on-chain strength improves as 91% of supply turns profitable post-crash.

• Short-term holders show resilience by flipping above their $113k cost basis.

• Whale activity surges with 2,772 BTC accumulated in one day, worth $309 million, signaling dip-buying interest.

Discover if Bitcoin’s bottom is in after the crash. On-chain data reveals whale buys and profitable supply at 91%. Stay ahead: monitor sentiment shifts for the next rally.

Has Bitcoin Reached Its Bottom After the Recent Crash?

Bitcoin bottom indicators point to stabilization following the October downturn, where BTC retained a 1.23% gain despite volatility. On-chain analysis from Glassnode shows 91% of the Bitcoin supply now in profit, a key sign of recovery as underwater wallets recover. This shift, combined with short-term holder resilience, suggests the market may have found support, though broader sentiment remains guarded.

What On-Chain Metrics Signal for Bitcoin’s Recovery?

Bitcoin’s on-chain metrics highlight growing confidence among investors. The short-term holder cost basis, defined as holdings over 155 days, has surpassed $113,000 for the first time since the crash, indicating reduced capitulation risk. Data from Glassnode reveals that previously distressed positions are flipping to profit, with whale wallets accumulating aggressively— one entity added 2,772 BTC on October 26, valued at approximately $309 million at the time. These patterns, including a rise in realized profits from weak hands, create a foundation for upward momentum. Experts note that such dynamics often precede sustained rallies, as resilient holders anchor the market. Statistics show exchange inflows declining by 15% week-over-week, further reducing selling pressure and supporting a potential bottom formation.

Source: Glassnode

Bitcoin continues to align with its historical seasonal trends, maintaining gains even after the flush. This positions BTC just 7% away from erasing all post-crash losses, fostering buyer conviction. As greed potentially returns, these metrics could trigger broader market participation if momentum persists.

Frequently Asked Questions

Is Bitcoin’s Bottom Confirmed by Current Whale Activity?

Whale accumulation provides strong evidence for a Bitcoin bottom, with recent buys totaling thousands of BTC at dip levels around $111,000 cost basis. On-chain data confirms reduced selling pressure, but full confirmation requires sustained price action above key supports like $113,000. Investors should watch for increased volume to validate this trend.

How Does the Fear and Greed Index Influence Bitcoin’s Recovery?

The Fear and Greed Index has edged up slightly since the crash, staying in neutral territory and reflecting cautious optimism among Bitcoin holders. This balanced sentiment, hovering around recent levels, supports gradual recovery without excessive risk-taking, making it ideal for steady accumulation as the market stabilizes.

Key Takeaways

• On-chain resilience builds: 91% of Bitcoin supply is profitable, signaling a shift from post-crash losses to recovery.
• Whale buys signal confidence: Accumulation of 2,772 BTC underscores dip-buying, potentially driving future rallies.
• Cautious sentiment persists: Neutral Fear and Greed Index advises measured positioning amid 10% distance from all-time highs.

Source: CoinMarketCap

Despite positive on-chain developments, Bitcoin’s market holds steady in a consolidation phase. Trading nearly 10% below its $126,000 peak, investors exhibit restraint, avoiding aggressive bets. The Fear and Greed Index’s modest rise underscores this tempered approach, where bulls prioritize stability over speculation. Analysts from Glassnode emphasize that while the groundwork for a rally exists, premature calls on a definitive bottom risk overlooking lingering caution. Exchange metrics indicate declining inflows, bolstering the case for reduced liquidation threats. However, external factors like macroeconomic shifts could sway sentiment, turning caution into either conviction or further pullback. For traders, this inflection point demands vigilance—monitoring whale flows and holder behavior remains essential.

In summary, Bitcoin’s bottom formation gains traction through profitable supply metrics and whale support, yet cautious sentiment tempers expectations for immediate surges. As on-chain strength solidifies, investors may soon shift toward optimism, paving the way for reclaiming highs. Stay informed on these dynamics to navigate the evolving crypto landscape effectively.

Conclusion

Bitcoin’s path to recovery integrates key Bitcoin bottom signals like resilient short-term holders and whale accumulation, alongside a neutral market tone. With 91% supply in profit and metrics stabilizing, the asset stands at a pivotal juncture. Looking ahead, sustained momentum could ignite broader participation—consider tracking on-chain trends for timely insights into the next phase.