This Key Bitcoin Metric Signals That The Downside May Persist A Bit Longer
After a sharp pullback in Bitcoin's price, speculation suggests the market may have entered a bearish phase. A key metric, the Bitcoin Z-Score, indicates that the downside movement has not yet climaxed, with BTC hitting a historically extreme -3σ downside deviation near the $60,000 mark. This suggests selling pressure and weak demand are likely to persist in the coming days, weeks, or even months. Analysts note that final market bottoms are typically formed through prolonged choppy compression rather than sharp crashes.
Additionally, the Bull Score Signals metric, which assesses on-chain health, shows most indicators are still negative, indicating a challenging environment for Bitcoin to reach new all-time highs in the short term. The drop below $60,000 has also pressured Bitcoin whales, who have increased their inflows to exchanges like Binance, with over 50,000 BTC moved since February 1. This activity often signals heightened selling pressure, especially in a tightening liquidity environment.
bitcoinist02/13 21:32