2 KEY BITCOIN TRADING METRICS SUGGEST BTC PRICE HAS BOTTOMED

Last updated: June 19, 2025, 23:00 | Written by: Justin Sun

Bitcoin's rollercoaster ride continues to captivate the world, with its price experiencing significant volatility in recent months.The struggle to reclaim the $50,000 level has left many investors wondering if the bottom is in.Adding to the uncertainty, Bitcoin (BTC) has been battling to maintain the $47,500 support level since the December 4th crash, an event that triggered the liquidation of over $840 million in leveraged long futures contracts. Bitcoin price is showing signs of weakening, as technical patterns and market data point to a possible sharp downturn. As of J, BTC s price has dropped by over 6% since May 23 and is trading above $104,000. Momentum indicators, volatility data, and futures positioning suggest bearish pressure is building across multiple timeframes.This downward pressure was further amplified by the emergence of the Omicron variant of the Coronavirus and concerning data indicating U.S. inflation reaching a staggering 40-year high.However, amidst the bearish sentiment, some intriguing indicators are emerging, suggesting that the recent correction might be nearing its end.Specifically, the actions of options market makers and margin traders on Bitfinex offer a glimpse into the potential future direction of the BTC price. Bitcoin's price rebounded over 9% from last week's lows, suggesting a potential local bottom at $38,000, according to CryptoQuant. Short-term Bitcoin holders sold their assets at a loss when Bitcoin briefly touched $38,000, a typical indicator of price bottoms.But what exactly are these metrics, and why are they significant? Despite Bitcoin price volatility and five-month lows, several key indicators suggest that the bulls may still have the upper hand, hinting at a potential resurgence in the BTC price trajectory. Bullish divergence boosts BTC rebound prospects.We delve deeper to explore these key indicators and analyze the possibility of a Bitcoin price recovery.

Understanding the Bitcoin Market Sentiment

Before diving into the specific metrics, it's crucial to understand the overall sentiment surrounding Bitcoin. 2 key Bitcoin trading metrics suggest BTC price has bottomed. Bitcoin price has yet to reclaim the $50,000 level, but the actions of options market makers and margin traders at Bitfinex suggestThe cryptocurrency market is heavily influenced by factors ranging from global economic conditions to regulatory announcements and technological advancements. Bitcoin price has yet to reclaim the $50,000 level, but the actions of options market makers and margin traders at Bitfinex suggest the most recent correction 2 key Bitcoin trading metrics suggest BTC price has bottomedPeriods of fear and uncertainty, like those witnessed with the Omicron variant and inflation concerns, can lead to widespread selling pressure, driving prices down. Bitcoin price has yet to reclaim the $50,000 level, but the actions of options market makers and margin traders at Bitfinex suggest the most recent correction is 2 key Bitcoin trading metrics suggest BTC price has bottomedConversely, positive news and increasing adoption can fuel bullish sentiment and push prices higher.

Furthermore, the psychology of traders plays a significant role. Fear of Missing Out (FOMO) can lead to irrational exuberance, while fear of further losses can trigger panic selling. Bitcoin price has yet to reclaim the $50,000 level, but the actions of options market makers and margin traders at Bitfinex suggest the most recent correction is over. Continue reading 2 keyThis emotional rollercoaster is especially pronounced in the highly volatile cryptocurrency market.

Key Metrics Suggesting a Potential Bottom

While technical analysis and chart patterns can provide some insights, a deeper understanding of the underlying market dynamics is often revealed through specific trading metrics. Bitcoin (BTC) has been struggling to sustain the $47,500 support since the Dec. 4 crash, a movement that wiped out over $840 million in leveraged long futures contracts. The downside move came after the emergence of the Omicron variant of the Coronavirus and recent data showing U.S. inflationTwo of the most compelling indicators that suggest a potential Bitcoin price bottom are the activities of options market makers and margin traders on Bitfinex.

Options Market Makers: A Sign of Stability

Options market makers play a crucial role in providing liquidity and facilitating trading in the options market. Bitcoin (BTC) has been struggling to sustain the $47,500 support since the Dec. 4 crash, a movement that wiped out over $840 million in leveraged long futures contracts. The downside move came after the emergence of the Omicron variant of the Coronavirus and recent data showing U.S. inflation hitting a 40-year high. Bitcoin/USD price at FTX.They profit from the spread between the buying and selling price of options contracts.To manage their risk effectively, they often take offsetting positions in the underlying asset, which in this case is Bitcoin. Web2.0 Web3.0 Latest News. Hot News. Hot News. 副标题Their actions can provide valuable clues about their expectations for future price movements.

Here's why their behavior is significant:

Hedging Activity: When market makers sell call options (giving buyers the right to buy Bitcoin at a specific price), they typically buy Bitcoin in the spot market to hedge their exposure. Recent data, however, provides some insights into whether the Bitcoin price has bottomed. As the digital currency touched a one-month low of $58,500, analysts from CryptoQuant and Glassnode revealed four crucial on-chain indicators to watch.Conversely, when they sell put options (giving buyers the right to sell Bitcoin at a specific price), they may sell Bitcoin in the spot market to hedge.
Directional Bias: By analyzing the volume and types of options contracts being bought and sold, and observing the corresponding hedging activity, analysts can infer the market makers' overall directional bias. 2 Key Bitcoin Trading Metrics Suggest BTC Price Has BottomedCRYPTOPRO4LIFE. Bitcoin (BTC) has been struggling to sustain the $47,500 support since the Dec. 4A shift towards buying Bitcoin to hedge call options suggests they anticipate an upward price movement.
Volatility Assessment: Option prices are directly related to volatility.Market makers adjust their prices based on their assessment of future volatility.A decrease in option prices, particularly for near-term contracts, can indicate that market makers believe volatility is subsiding, suggesting a more stable market environment.

If options market makers are reducing their bearish bets and hedging for potential upside, it could signify that they believe the worst of the correction is over.

Margin Traders on Bitfinex: A Contrarian Indicator

Bitfinex is a cryptocurrency exchange known for its relatively high proportion of sophisticated and professional traders. The crypto market experienced a severe downturn on Tuesday, and according to many on-chain metrics marked a bottom in bitcoin's (BTC) price.The activity of margin traders on Bitfinex, in particular, can provide valuable insights into market sentiment and potential trend reversals. Bitcoin price has yet to reclaim the 50 000 level but the actions of options market makers and margin traders at Bitfinex suggest the most recent correction is overMargin trading involves borrowing funds to amplify trading positions, allowing traders to potentially increase their profits (or losses).Because margin trading is high-risk, the participants are often very experienced and well-informed.

Here's how their behavior can act as a contrarian indicator:

Long/Short Ratio: The ratio of long positions (bets that the price will rise) to short positions (bets that the price will fall) can reveal the overall sentiment of margin traders.A high long/short ratio indicates strong bullish sentiment, while a low ratio suggests bearishness.However, extreme readings in either direction can often signal a potential trend reversal.
Liquidation Levels: During periods of sharp price declines, highly leveraged long positions can be liquidated, triggering a cascade of selling pressure.Observing the levels at which these liquidations occur can help identify potential support levels and areas where the market might find a bottom.
Change in Positioning: A significant shift in the positioning of margin traders, such as a rapid reduction in short positions or an increase in long positions after a price decline, can suggest that they believe the market has bottomed and are positioning themselves for a rebound.

In the context of the recent correction, if margin traders on Bitfinex are reducing their short positions and increasing their long positions, it could indicate that they believe the downside risk is limited and are anticipating a recovery.This is especially true if they are accumulating long positions after a significant liquidation event, suggesting that they are absorbing the selling pressure and establishing a new base.

Supporting On-Chain Data

While the actions of options market makers and margin traders provide valuable insights, it's essential to consider these signals in conjunction with other on-chain data and market indicators.Several other factors can corroborate the idea that Bitcoin might have found a bottom:

Short-Term Holder Behavior: Historically, price bottoms often coincide with periods of heavy selling by short-term Bitcoin holders who purchased BTC at higher prices.When these holders sell their assets at a loss, it can signal capitulation and exhaustion of selling pressure.
Exchange Outflows: Increased outflows of Bitcoin from exchanges to cold storage wallets can indicate a decrease in selling pressure, as investors are moving their coins off exchanges with the intention of holding them for the long term.
Miner Activity: Changes in miner activity, such as decreased selling pressure or increased accumulation, can also provide valuable signals. Bitcoin (BTC) has been struggling to sustain the $47,500 support since the Dec. 4 crash, a movement that wiped out over $840 million in leveraged long futures contracts. The downside 2 key Bitcoin trading metrics suggest BTC price has bottomedMiners are a significant source of Bitcoin supply, and their behavior can influence price movements.

CryptoQuant reported that Bitcoin rebounded over 9% from recent lows, suggesting a potential local bottom at $38,000.Further analysis of on-chain metrics supports this claim.

Potential Risks and Counterarguments

It's important to acknowledge that no indicator is foolproof, and the Bitcoin market is inherently unpredictable.Even if the actions of options market makers and margin traders suggest a potential bottom, several risks and counterarguments remain:

Macroeconomic Factors: Unexpected events, such as further increases in inflation or geopolitical tensions, could trigger renewed selling pressure and invalidate the bullish signals.
Regulatory Uncertainty: Negative regulatory announcements or crackdowns on cryptocurrency exchanges could negatively impact market sentiment and prices.
Technical Breakdowns: A breakdown below key support levels could trigger further selling and invalidate the bottom formation.

Furthermore, it's important to remember that correlation does not equal causation.While the actions of options market makers and margin traders may coincide with price bottoms, there is no guarantee that they are the driving force behind the recovery.It's possible that other factors are at play, and their behavior is simply a reflection of the overall market sentiment.

Actionable Advice for Bitcoin Traders

So, what should Bitcoin traders do in light of these signals?

Do Your Own Research (DYOR): Don't rely solely on the analysis of others.Conduct your own independent research and analysis to form your own informed opinion.
Manage Your Risk: The cryptocurrency market is highly volatile.Use risk management techniques, such as stop-loss orders and position sizing, to protect your capital.
Diversify Your Portfolio: Don't put all your eggs in one basket. Bitcoin s price has yet to reclaim the $50,000 level, but the actions of options market makers and margin traders on Bitfinex suggest the most recent correction is over.Diversify your investments across different asset classes to reduce your overall risk.
Stay Informed: Keep up-to-date with the latest news and developments in the cryptocurrency market. Bitcoin price has yet to reclaim the $50,000 level, but the actions of options market makers and margin traders at Bitfinex suggest the most recent correction is over. Bitcoin ( BTC ) has been struggling to sustain the $47,500 support since the Dec. 4 crash, a movement that wiped out over $840 million in leveraged long futures contracts.Follow reputable sources of information and be wary of scams and hype.
Consider Dollar-Cost Averaging (DCA): Instead of trying to time the market, consider using a dollar-cost averaging strategy. BTCUSD Bitcoin 2 key Bitcoin trading metrics suggest BTC price has bottomed. Bitcoin price has yet to reclaim the $50,000 level, but the actions of options market makers and margin traders atInvest a fixed amount of money at regular intervals, regardless of the price, to smooth out your average cost over time.

Answering Common Questions About Bitcoin Bottoms

Here are some common questions that investors have about Bitcoin price bottoms, with answers to help you navigate the market:

How do I know when Bitcoin has bottomed?

Unfortunately, there's no foolproof method to definitively know when Bitcoin has bottomed. Bitcoin (BTC) has been struggling to sustain the $47,500 support since the Dec. 4 crash, a movement that wiped out over $840 million in leveraged long futures contracts. The downside move came after the emergence of the Omicron variant of the Coronavirus and recent data showing U.S. inflation hitting a 40-year high.Multiple indicators, including on-chain metrics, technical analysis, and market sentiment, need to be considered.Look for confluence of signals, such as short-term holder capitulation, exchange outflows, and positive positioning from options market makers and margin traders.

Can Bitcoin go lower after a potential bottom?

Yes, it's entirely possible. Bitcoin price has yet to reclaim the $50,000 level, but the actions of options market makers and margin traders at Bitfinex suggest the most recent correction is over. Bitcoin (BTC) has been struggling to sustain the $47,500 support since the Dec. 4 crash, a movement that wiped out over $840 million in leveraged long futures contracts.The cryptocurrency market is volatile, and unforeseen events can trigger further price declines. 2 key Bitcoin trading metrics suggest BTC price has bottomed 邏 cryptohottestnews cryptonews bitcoinEven if a potential bottom is identified, there's no guarantee that the price won't break below that level. Bitcoin price has yet to reclaim the $50,000 level, but the actions of options market makers and margin traders at Bitfinex suggest the most recent correction is over. Bitcoin (BTC) has beenAlways be prepared for unexpected price movements.

Is it safe to buy Bitcoin after a crash?

Buying Bitcoin after a crash can be a potentially profitable strategy if you believe the market has bottomed and is poised for a recovery. Bitcoin (BTC) has been struggling to sustain the $47,500 support since the Dec. 4 crash, a movement that wiped out over $840 million in leveraged long futures contracts. The downside move came after the emergence of the Omicron variant of the Coronavirus and recent data showing U.S. inflation hitting a 40-year high. Bitcoin/USD price atHowever, it's essential to do your own research, manage your risk, and be prepared for the possibility of further price declines. 2 key Bitcoin trading metrics suggest BTC price has bottomedNever invest more than you can afford to lose.

What other factors influence the Bitcoin price?

Numerous factors can influence the Bitcoin price, including:

Supply and Demand: The basic economic principles of supply and demand play a crucial role.Limited supply and increasing demand drive prices up, while increased supply and decreasing demand drive prices down.
Market Sentiment: The overall sentiment of investors, influenced by news, events, and social media, can significantly impact the price.
Regulatory Environment: Government regulations and policies regarding cryptocurrencies can have a major impact on the market.
Technological Advancements: Developments in Bitcoin technology and blockchain technology can influence investor confidence and price.
Macroeconomic Conditions: Factors such as inflation, interest rates, and economic growth can affect investor appetite for risk assets like Bitcoin.

Conclusion: Cautious Optimism for Bitcoin's Future

While Bitcoin has faced significant headwinds in recent times, the actions of options market makers and margin traders on Bitfinex offer a glimmer of hope.These metrics, coupled with supporting on-chain data, suggest that the recent correction may be nearing its end.However, it's crucial to remain cautious and acknowledge the inherent risks and uncertainties of the cryptocurrency market.Remember to conduct your own research, manage your risk, and diversify your portfolio.By carefully analyzing the available data and staying informed, you can make more informed decisions and navigate the Bitcoin market with greater confidence.The Bitcoin market is known for its volatility, and while these indicators point towards a potential bottom, the price action of BTC will ultimately be determined by a multitude of factors.Stay vigilant, adapt to the changing market conditions, and always prioritize responsible investing practices.