Bitcoin 3 Signs of Short-term Bottom Coming?
Bitcoin has experienced a sharp correction recently, falling from its historical high of $99,655 to this week's lowest price of $90,742. However, Cointelegraph pointed out that there are currently three signs in the market that indicate that a short-term bottom may have arrived.
Sign 1: Coinbase Premium Index rebounds from lows
The Coinbase Premium Index mainly calculates the price difference between Bitcoin on the Coinbase exchange and the Binance exchange. The index has rebounded from -0.0387 on November 26 to 0.091 now, representing a recovery in demand from U.S. retail investors.
Julio Moreno, director of research at blockchain data platform CryptoQuant, said Bitcoin demand growth has accelerated again after the recent pullback, which may push prices higher again.
Image Source: CryptoQuantCoinbase Premium Index Rebounds from Lows
Sign 2: U.S. Bitcoin spot ETF turns to net inflows
On November 26, the U.S. Bitcoin Spot ETF turned to net inflows of $103 million, reversing two consecutive days of net outflows of $558 million.
In addition, the latest weekly report from digital asset management company CoinShares also showed that in the week ending November 22, institutional Bitcoin investment products had a total net inflow of US$3.07 billion, accounting for more than 98% of the total inflow.
Source: Farside Investors U.S. Bitcoin Spot ETF turns to net inflows
Sign Three: Bitcoin Balances on Exchanges Drop to Six-Year Low
Data from CryptoQuant shows that although Bitcoin is close to the key integer of $100,000, the balance of Bitcoin on mainstream exchanges around the world has continued to decline and has fallen below 2.4 million, the lowest level since November 2018.
Generally speaking, when exchange Bitcoin balances continue to decline, it means that less and less supply is available for sale as investors move funds to self-custody wallets.
Source: Bitcoin balance on CryptoQuant exchange falls to six-year low
When Will Bitcoin Top $100,000?
If Bitcoin has really bottomed out in the short term, when will there be a chance to challenge $100,000 again?
Data from Polymarket, a well-known blockchain prediction platform, shows that even though Bitcoin has begun to correct recently, the market is still optimistic, predicting that there is a 78% chance that Bitcoin will exceed $100,000 before the end of 2024.
According to (Newsweek) reports, most experts believe that although there may be fluctuations and corrections in the short term, the fundamentals and institutional momentum supporting Bitcoin's growth are stronger than any previous bull market cycle.
As institutions such as BlackRock launch Bitcoin products, or more listed companies follow the micro-strategy and include Bitcoin on their balance sheets, this bull market will be very different from the past.
As for when Bitcoin might hit $100,000? (Newsweek) pointed out that experts’ prediction range is concentrated between the end of 2024 and the beginning of 2025.
Taken together, Bitcoin’s recent pullback appears to be a brief correction rather than the beginning of a bear market. The Coinbase premium index, US ETF inflows and declines in exchange Bitcoin balances all indicate that Bitcoin demand is rising again.
Experts generally believe that although there may be fluctuations in the short term, the long-term prospects for Bitcoin to exceed $100,000 are still very optimistic. It is only a matter of time.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
“Bitcoin’s correction is almost over! 3 signs show that the bottom is coming, are you ready to hit 100,000 "at this time"? 』This article was first published in "CryptoCity"
