Analysis: Potential Local Bottom for Bitcoin, According to Bitfinex

Bitfinex analysts have highlighted various indicators suggesting that Bitcoin may have reached a local bottom in its recent downturn.

• Bitcoin price dipped below the 120-day range on July 3, hitting a low of $53,219 amidst concerns surrounding Mt. Gox’s creditor repayments.
• Despite ongoing distributions from Mt. Gox, Bitfinex analysts believe a local bottom may have been reached based on recent market data.
• The sell-off in Bitcoin was partly triggered by the German law enforcement agency selling Bitcoin, resulting in heightened selling pressure.

Factors Supporting Potential Bitcoin Rebound

Bitfinex has pointed out several reasons why Bitcoin could be poised for a turnaround:

• U.S. and Germany have only sold a small portion (4%) of all Bitcoin exchanged since 2023.
• The spent output profit ratio (SOPR) has dropped, indicating short-term investors are not selling at a loss.
• Negative funding rates and low SOPR values have historically signaled market bottoms.

These combined factors suggest that Bitcoin may be reaching a point of stabilization and could see a rebound in the near future.