A BULLISH BITCOIN TREND REVERSAL IS A FAR-FETCHED IDEA, BUT THIS METRIC IS SCREAMING BUY

The Bitcoin market is a rollercoaster, and right now, many are strapped in with white knuckles. The Bitcoin (BTC-1.28%) whitepaper compared the cryptocurrency to physical gold in 2025. 17 years later, the cryptocurrency seems ready to take on a more gold-like role in the global economy. ButWhile some technical indicators are hinting at a potential bullish reversal, the overall sentiment remains cautious, even skeptical.A classic inverse head-and-shoulders formation on the daily chart, usually a strong signal for upside potential, is being viewed with apprehension by veteran market watchers.Non-crypto factors, like global economic uncertainty and regulatory concerns, continue to cast a long shadow over BTC's price. Non crypto-related factors continue to weigh on BTC price, but a key on-chain metric that called previous market bottoms suggests Bitcoin is severely undervalued. Bitcoin (BTC) price remains pinned below $22,000 as the lingering impact of the Aug. 19 sell-off at $25,200 continues to be felt across the market. According to analysts from on-chain monitoring resource Glassnode, BTC s tap at theBitcoin price remains pinned below $22,000, struggling to overcome the aftershocks of a significant sell-off. A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming buy Home / A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming buyBut amidst the uncertainty and the bearish headwinds, a crucial on-chain metric, a reliable predictor of past market bottoms, is flashing a bright, almost insistent, ""buy"" signal. A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming buy A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming buyThis divergence between technical analysis and on-chain data presents a fascinating conundrum for investors.So, is it time to brace for another dip, or is this undervalued signal the green light we've been waiting for?We'll dive deep into the data, analyze the counterarguments, and explore what this metric truly suggests about Bitcoin's future trajectory.

Decoding the Contrarian Signal: What's This Metric Saying?

So, what exactly is this mysterious metric that's bucking the trend and whispering promises of a Bitcoin bull run?We need to dig into the intricacies of on-chain analysis to understand its power.This particular metric, frequently highlighted by Glassnode and other on-chain analysis firms, has a proven track record of identifying moments when Bitcoin is significantly undervalued.It essentially gauges the relationship between Bitcoin's market capitalization and its underlying network activity. A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming buy Aug 0:03When the market cap falls significantly below the level suggested by network activity, it indicates that Bitcoin is trading at a discount relative to its intrinsic value.

How Does This Metric Work in Practice?

Think of it like this: Imagine a company whose stock price plummets despite strong revenue and consistent user growth. Menu. Home; Bitcoin Chart; Cryptocurrency News; Live PricesA savvy investor would recognize that the market is undervaluing the company and see it as an opportunity to buy.This on-chain metric operates on a similar principle.By analyzing the flow of Bitcoin transactions, the number of active addresses, and other network-related factors, it creates a baseline for what Bitcoin should be worth.When the actual market price falls below this baseline, it suggests that fear and uncertainty are driving the price down, creating a potential buying opportunity for those who believe in Bitcoin's long-term potential.

This metric considers various factors:

• Transaction Volume: Measures the amount of Bitcoin being transacted on the network.
• Active Addresses: Tracks the number of unique addresses participating in transactions.
• Entity-Adjusted Volume: Attempts to filter out noise from exchange activity to focus on real economic activity.

When these factors are strong, but the price is weak, the metric flashes its ""buy"" signal. A bullish Bitcoin trend reversal is really a far-fetched idea, however this metric is screaming 'buy' . news and more. Buy, Sell and Swap bitcoin, ethereum and 350 cryptocurrencies on BitSwapNow. No sign up required.It's important to note that this is not a perfect indicator and doesn't guarantee immediate profits, but it does provide valuable insight into Bitcoin's underlying value.

The Skeptic's Corner: Why a Bullish Reversal Seems Unlikely

Before you jump headfirst into buying Bitcoin based on this single metric, let's address the elephant in the room: the overwhelming skepticism surrounding a potential bullish reversal. Bitcoin total inflows and outflows to all exchanges (USD). Source: glassnode The firm also noted that the total inflows and outflows to all exchanges metric shows exchange flows at multi-year lows and back to late-2025 levels, which reflects a general lack of speculative interest.Several factors are contributing to this cautious sentiment.

• Macroeconomic Headwinds: Inflation, rising interest rates, and the ongoing war in Ukraine are creating significant uncertainty in global markets. cointelegraph.com: Non crypto-related factors continue to weigh on BTC price, but a key on-chain metric that called previous market bottoms suggests Bitcoin is severely undervalued.These factors tend to weigh on risk assets like Bitcoin.
• Regulatory Scrutiny: Increased regulatory scrutiny of the cryptocurrency industry is creating uncertainty and potentially dampening investor enthusiasm.
• Lingering Effects of the August Sell-Off: The sharp price drop in August, triggered by a cascade of liquidations and profit-taking, has left many investors wary of another sudden downturn. Non crypto-related factors continue to weigh on BTC price, but a key on-chain metric that called previous market bottoms suggests Bitcoin is severely undervalued. Bitcoin (BTC) price remains pinned below $22,000 as the lingering impact of the Aug. 19 sell-off at $25,200 continues to be felt across the market. According to analysts from on-chain monitoring [ ]Bitcoin price remains pinned below $22,000 as a result of the sell-off at $25,200.
• Peter Brandt's Caution: Veteran chartist Peter Brandt, known for his accurate market predictions, is urging caution. Bitcoin (BTC) price remains pinned below $22,000 as the lingering impact of the Aug. 19 sell-off at $25,200 continues to be felt across the market. According to analysts from on-chain monitoring resource Glassnode, BTC s tap at the $25,000 level was followed by distribution as profit-takers and short-term holders sold as price encountered a trendline resistance [ ]His bearish outlook carries significant weight in the crypto community.

These factors paint a rather bleak picture for a near-term bullish reversal. Bitcoin price remains pinned below $22,000 as the lingering impact of the Aug. 19 sell-off at $25,200 continues to be felt across the market.According to analysts from on-chain monitoring resource Glassnode, BTC s tap at the $25,000 level was followed by distribution as profit-takers and short-term holders sold as price encountered a trendline resistance following a 23-consecutive-dayThe market is grappling with significant challenges, and investor sentiment remains fragile.

Technical Analysis: The Inverse Head and Shoulders Pattern and Its Limitations

While the on-chain metric suggests undervaluation, technical analysis presents a mixed bag.The emergence of a classic inverse head-and-shoulders (H&S) formation on the daily chart is undoubtedly a positive sign.This pattern is typically considered a strong signal of upside potential.

Understanding the Inverse Head and Shoulders Pattern

The inverse head and shoulders pattern resembles an upside-down version of the traditional head and shoulders pattern, which signals a bearish reversal.It consists of:

1. Left Shoulder: A small rally followed by a decline.
2. Head: A deeper decline that reaches a lower low than the left shoulder.
3. Right Shoulder: A rally that reaches a similar high to the left shoulder, followed by a decline.
4. Neckline: A resistance level connecting the highs of the rallies between the left shoulder, head, and right shoulder.

A breakout above the neckline is considered confirmation of the pattern and suggests a potential price rally.

The Problem with Relying Solely on Technicals

However, relying solely on this pattern can be misleading. Technical analysis is based on historical price data and assumes that past patterns will repeat themselves. The post A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming 'buy' appeared first on CoinTelegraph. Bitcoin (COIN:BTCUSD) Gr fico Hist rico do AtivoIn reality, market conditions are constantly changing, and external factors can invalidate even the most promising technical setups. A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming buy Bitcoin (BTC) price remains pinned below $22,000 as the lingering impact of the Aug. 19 sell-off at $25,200 continues to be felt across the market.Furthermore, veteran chartists like Peter Brandt are skeptical, suggesting that the current market environment is not conducive to a successful breakout.

Bitcoin's Role as Digital Gold: A Long-Term Perspective

Beyond the short-term price fluctuations and technical patterns, it's important to consider Bitcoin's long-term potential.The Bitcoin whitepaper drew parallels between Bitcoin and physical gold, envisioning it as a decentralized and censorship-resistant store of value. A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming 'buy' From cointelegraph.com Bitcoin (BTC) price remains pinned below $22,000 as the lingering impact of the Aug. 19 sell-off at $25,200 continues to be felt across the market.Seventeen years later, this vision appears to be gaining traction.

Bitcoin vs. A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming 'buy' Non crypto-related factors continue to weigh on BTC price, but a key on-chain metric that called previous A bullish Bitcoin trend reversal isGold: A Comparison

Like gold, Bitcoin has a limited supply, making it resistant to inflation.It's also decentralized, meaning it's not controlled by any single entity, making it resistant to censorship. A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming buy Bitcoin (BTC) price remains pinned below $22,000 as the lingering impact of the Aug. 19 sell-off at . Bitcoin mining difficulty set to hit record high today amid US miner scrutinyThese characteristics make Bitcoin an attractive alternative to traditional assets, especially in times of economic uncertainty.

The total inflows and outflows to all exchanges metric showing exchange flows at multi-year lows and back to late-2015 levels, reflects a general lack of speculative interest.This lack of speculative interest suggests a maturation of the market with long-term holders accumulating.

Bitcoin's Potential in the Global Economy

As the global economy becomes increasingly digital, Bitcoin's role as digital gold is likely to become even more prominent. Hot News. Hot News. 副标题Its scarcity, decentralization, and portability make it well-suited for a world where traditional financial systems are facing increasing challenges.

Analyzing Bitcoin's Support and Resistance Levels

Understanding Bitcoin's support and resistance levels is crucial for making informed trading decisions. A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming 'buy'⁣ farfetched screaming buy scream ideasSupport levels represent price points where buying pressure is expected to emerge, preventing further price declines. Name Symbol Market Market Cap ($) Algorithm; Bitcoin: BTCUSD: Crypto: 445,582,029,309: SHA-256dResistance levels, on the other hand, represent price points where selling pressure is expected to emerge, preventing further price increases.

Key Support Levels

According to IntoTheBlock data, Bitcoin appears to have solid support between $19,703 and $20,314, a range where a significant volume of BTC was accumulated.This means that if the price drops to this level, there's a good chance that buyers will step in and prevent further declines.

Key Resistance Levels

The volume of coins bought between $20,425 and $20,924 is relatively lower.This suggests that Bitcoin will unlikely encounter major selling pressure in the short term until it approaches those levels.The lingering impact of the August 19th sell-off at $25,200 continues to cap gains.

Actionable Advice: Navigating the Uncertain Waters

So, what should you do with all this information? A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming buy Bitcoin ( BTC ) price remains pinned below $22,000 as the lingering impact of the Aug. 19 sell-off at $25,200 continues to be felt across the market.Here's some actionable advice for navigating the current uncertain market conditions:

• Do Your Own Research (DYOR): Don't rely solely on this article or any other single source of information.Conduct your own thorough research before making any investment decisions.
• Manage Your Risk: Only invest what you can afford to lose. 2.8K subscribers in the cryptopricesalerts community. Our trackers will post any relevant info about cryptos. Wanna see more? See you onBitcoin is a volatile asset, and its price can fluctuate significantly.
• Diversify Your Portfolio: Don't put all your eggs in one basket. Bitcoin (BTC) is showing early signs of a bullish reversal, but not everyone is convinced. A classic inverse head-and-shoulders (H S) formation has emerged on the daily chart typically a strong signal of upside potential. However, veteran chartist Peter Brandt is urging caution.Diversify your portfolio across different asset classes to reduce your overall risk.
• Consider Dollar-Cost Averaging (DCA): Instead of trying to time the market, consider using dollar-cost averaging. According to IntoTheBlock data, Bitcoin appears to have solid support between $92,703 and $105,314 a range where a significant volume of BTC was accumulated. In contrast, the volume of coins bought between $105,425 and $110,624 is relatively lower. This suggests that Bitcoin will unlikely encounter major selling pressure in the short term.This involves investing a fixed amount of money at regular intervals, regardless of the price.
• Stay Informed: Keep up-to-date with the latest news and developments in the cryptocurrency industry.

Common Questions About Bitcoin and Market Reversals

Is Bitcoin a good investment right now?

Whether Bitcoin is a good investment right now depends on your individual circumstances, risk tolerance, and investment goals.The on-chain metric suggests that Bitcoin is currently undervalued, but there are also significant risks to consider, such as macroeconomic uncertainty and regulatory scrutiny.Conduct thorough research and consult with a financial advisor before making any investment decisions.

What are the biggest risks associated with Bitcoin?

The biggest risks associated with Bitcoin include:

• Volatility: Bitcoin's price can fluctuate significantly, leading to potential losses.
• Regulation: Increased regulatory scrutiny could negatively impact Bitcoin's price and adoption.
• Security: Bitcoin exchanges and wallets can be hacked, leading to the loss of funds.
• Competition: New cryptocurrencies and blockchain technologies could emerge, challenging Bitcoin's dominance.

How can I protect myself from Bitcoin scams?

To protect yourself from Bitcoin scams:

• Be wary of promises of guaranteed returns.
• Never give out your private keys or seed phrases.
• Use a reputable exchange and wallet.
• Do your own research before investing in any cryptocurrency project.
• Be skeptical of unsolicited offers or requests.

Conclusion: A Cautious Optimism

While a bullish Bitcoin trend reversal might seem like a far-fetched idea given the current market conditions, the ""buy"" signal from this specific on-chain metric cannot be ignored. Bitcoin (BTC) price remains pinned below $22,000 as the lingering impact of the Aug. 19 sell-off at $25,200 continues to be felt across the market.According to analysts from on-chain A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming 'buy'It suggests that Bitcoin is potentially undervalued and could be poised for a recovery, especially from a long-term perspective. A bullish Bitcoin trend reversal is a far-fetched idea, but this metric is screaming 'buy'However, it's crucial to acknowledge the significant risks and uncertainties that remain.Investors should proceed with caution, conduct thorough research, and manage their risk accordingly. Non crypto-related factors continue to weigh on BTC price but a key on-chain metric that called previous market bottoms suggests Bitcoin is severely undervalued Bitcoin BTC price remains pinned below 22 000 as the lingering impactThe confluence of a potentially bullish technical pattern like the inverse head and shoulders with this on-chain metric does present an interesting opportunity, but the overall global economic situation and regulatory landscape require a measured approach.The key takeaways are:

• One on-chain metric signals Bitcoin is undervalued, even though price is below $22,000
• Macroeconomic factors and regulatory concerns weigh on Bitcoin.
• Consider Bitcoin's long-term potential as digital gold.
• Manage risk and diversify your portfolio.

Ultimately, the decision of whether or not to buy Bitcoin is a personal one.By carefully weighing the risks and rewards, and by staying informed about the latest developments in the cryptocurrency market, you can make an informed decision that aligns with your financial goals.