Bitcoin’s entity-adjusted dormancy flow dropped below 250,000, signaling a historical buy zone. Short-term holder NUPL turned negative, showing seller exhaustion. Chart patterns suggest a potential rise to $118,000-$124,500. BTC price traded 5% above its local low of $108,650, indicating a possible local bottom.

Entity-adjusted dormancy flow is a key metric to determine if Bitcoin has bottomed out. Historically, drops below 250,000 have led to price recoveries. Breakouts above 250,000 signal the start of bull runs. With the indicator showing a bullish signal, BTC price could rise to test all-time highs.

Bitcoin’s short-term holder NUPL flipped negative, indicating stress among recent buyers. Negative NUPL readings have coincided with price bottoms in bear markets. Once selling pressure subsides, demand from long-term holders or new buyers can stabilize prices and drive them upward.

BTC shows V-shaped and double-bottom chart patterns, hinting at a potential rise. The price could reach $118,000 in the short term, then break out to all-time highs at $124,500. Analysts see a clean market structure with positive indicators for a bullish trend in the near future.

Read more at Cointelegraph: These Metrics Say $108K Bitcoin Price Was Local Bottom.