Bitcoin Nears Market Bottom as Historic Signal Resurfaces

Bitcoin's recent price action may be signaling that it is nearing a market bottom, according to Doctor Profit, a widely followed crypto analyst. The analyst points out that the average cost basis of short-term holders has fallen below that of investors who have held for one to two years, a pattern seen in 2015, 2019, and 2022.

This on-chain metric tracks the realized cost basis of different investor cohorts. When short-term holders, typically defined as those who acquired Bitcoin within the last 155 days, have a lower average cost than the one-to-two-year holder group, it indicates that newer entrants are selling at a loss.

In previous cycles, this condition marked a period where longer-term investors absorbed the supply, often preceding a bottom formation. The current market appears to be mirroring these patterns, with Bitcoin moving sideways and entering what Doctor Profit describes as a phase of long-term accumulation.