Bitcoin Searches for Bottom, Stabilization in Sight
Bitcoin's prolonged decline may be approaching a turning point as recent market action has shifted attention from sharp downside moves to whether the cryptocurrency is beginning a period of stabilization.
Analysts say that rather than focusing on short-term price swings, traders are increasingly monitoring technical indicators that historically have accompanied major market bottoms.
The 200-day moving average, which smooths out daily price fluctuations to identify longer-term market trends, has become a closely watched measure. Assets trading above this level are generally viewed as being in an established uptrend, while sustained trading below it often signals broader weakness.
Long-term holders have continued to retain a significant share of the circulating supply even as speculative activity has slowed, according to blockchain analytics firm Glassnode.