Bitcoin (BTC) Price May Have Found a Local Bottom, Showing Signs of Stabilization: Analysts

Analysts report that Bitcoin BTC/USD prices may have found a local bottom and are showing signs of stabilization.

Bitcoin (CRYPTO: BTC) price may have found a local bottom and is showing signs of stabilizing, according to analysts at Bitfinex.

What Happened: The exchange’s analysts observed that derivatives market indicators suggest bitcoin’s price could be stabilizing, The Block reported.

Last Wednesday, bitcoin fell below its 120-day range, hitting a low of $53,219. Observers blamed the German government’s selling and Mt. Gox creditors for the drop.

Since then, the apex crypto has rebounded above $57,000, although daily price volatility spiked. Bitfinex analysts noted that the spread between implied and historical volatility has decreased by nearly 90%. This indicates that traders expect prices to stabilize.

Moreover, options open interest shows a lack of conviction in either direction, with short-term shorts being flushed out by a slight price uptick on Tuesday. Long-term holders continue to realize profits, while short-term holders are selling at a loss. This has historically led to price rebounds as selling pressure eases.

See Also: Top Crypto Analyst Shares Update On ‘All-In Altcoin’ Strategy: ‘I’ve Been Doing This Rodeo For Multiple Cycles Already’

Why It Matters: The recent stabilization in bitcoin prices comes as traders have been keeping a close watch on macroeconomic factors such as CPI data and comments from Fed chair Jerome Powell.

The approval of Ethereum (CRYPTO: ETH) ETFs for trading and the filing of spot Solana (CRYPTO: SOL) ETFs have been seen as potential catalysts for market movements.

Spot bitcoin ETFs have seen substantial inflows since bitcoin dipped below $60,000, shaking off the “dumb money” label. These ETFs saw nearly $300 million in net inflows on Monday, led by BlackRock’s iShares Bitcoin Trust (NYSE:IBIT) with $187 million. This influx of capital suggests strong institutional interest, despite recent selling pressures from entities like the German government and the defunct Mt. Gox exchange.

What’s Next: These topics are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.

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