Bitcoin Early Signs Point to Potential Bottom Despite Lingering Market Stress

Bitcoin's potential bottom is flashing early warning signs, according to recent technical and on-chain indicators. Despite ongoing market stress, several key metrics suggest that selling pressure may be exhausting.

The Bitcoin Puell Multiple has dropped to levels seen in previous cyclical lows, indicating miner profitability. The MVRV ratio has also fallen below its 365-day average, a zone often associated with undervaluation.

Additionally, exchange inflows have declined, suggesting fewer holders are moving coins to exchanges for sale. This reduction in sell-side pressure, combined with stabilization in funding rates, may indicate the panic selling phase is cooling off.

However, market stress remains elevated, with the Crypto Fear & Greed Index still in 'extreme fear' territory. Regulatory uncertainties and recent failures continue to weigh on investor sentiment.