Bitcoin Price Signals Macro Bottom Formation Amid Digital Gold Narrative

Bitcoin's recent price behavior and on-chain data are sending signals that the cryptocurrency may be forming a macro bottom, according to reports from blockchain data firm CryptoQuant.

The price of Bitcoin has stood at $63,362 over the past 24 hours, showing little movement. Since reaching a record high of $126,080 in October, it has shed nearly 50% of its value.

Analyst MorenoDV pointed out that long-term holders (LTH) are sitting on deeper unrealized losses than the broader market, which is typically seen at major cycle bottoms. The adjusted Net Unrealized Profit/Loss (NUPL) data for LTH has crossed into negative territory and sits below the broader market average.

This pattern has historically shown up at every major cycle bottom, including trading roughly 50% below its cycle high. However, analysts caution against calling a bottom just yet, as previous cycles have seen LTH aNUPL fall into much deeper, more prolonged negative readings before a true low was reached.