As the Bitcoin market continues to experience the surge in sales that began in mid-October, recent on-chain data paints a somewhat optimistic picture for the future of the cryptocurrency. The question is: is Bitcoin at the bottom?
Is a BTC price reversal imminent?
In a recent Quicktake post on the CryptoQuant platform, anonymous cryptocurrency expert Sunny Mom shared that a bottom could be just around the corner for the Bitcoin price. Sunny Mom’s post was based on four on-chain metrics that examine the behavior of Bitcoin market participants.
The first is the Futures Taker CVD (Cumulative Volume Delta, 90 Days) indicator, which helps track the net difference between aggressive buy and sell volumes (known as taker orders) in the Bitcoin futures market over the past 90 days.
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According to online experts, more dominant selling zones (red) are turning into neutral zones. This means that leveraged short positions (usually held by the most fearful and aggressive of Bitcoin market participants) are slowly being pulled out, thus weakening these speculative hands.
Next, on-chain analysts consulted data from the Spot Taker CVD (Cumulative Volume Delta, 90-day) indicator. Although the number of speculative sellers is decreasing, spot CVD appears to still be in deficit. Typically, a ‘red’ reading on this indicator indicates that Bitcoin holders are still selling their coins.
Another interesting event is that the Bitcoin:Stablecoin Supply Ratio (SSR) has fallen to its lowest level. For context, this indicator measures the ratio between the supply of Bitcoin and the supply of stablecoins (such as USDT and USDC).
A high SSR means there are fewer stablecoins compared to Bitcoin. Furthermore, it points out that the purchasing power to purchase Bitcoin to drive the price up is low. On the other hand, a lower SSR means a relative abundance of stablecoins compared to top cryptocurrencies, which suggests there is more potential purchasing power in the Bitcoin market.
Examining past price movements, it is clear that periods where SSR has been marked as ‘significantly low’ have often been preceded by significant price rallies in major cryptocurrencies. If history is anything to go by, analysts have inferred that we are headed for another bounce, seeing as the SSR indicator is currently hovering around historic lows.
Lastly, Sunny Mom explained that data from the Adjusted Spent Output Profit Ratio (aSOPR) also supports the overall speculation that a price bottom is imminent. Currently aSOPR is displayed at approximately 1.0. This is the level at which the April 2025 breach preceded a major price reversal.
Bitcoin price at a glance
As of this writing, the BTC price is around $102,510, up more than 1% in the last 24 hours.
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Featured image from iStock, chart from TradingView