Bitcoin may be establishing a local bottom after dropping over 35% from its record high. Momentum, miner capitulation, and liquidity indicators suggest fading selling pressure. Historical patterns show potential for a recovery within 4-6 weeks. Bitcoin’s Stochastic RSI and three-day chart signal exhaustion of selling pressure.
Bitcoin’s hashrate decline implies miner capitulation, historically leading to stronger BTC returns. Positive 90-day returns followed 30-day hashrate drops 65% of the time since 2014. Rising prices could boost miner profitability and reactivate sidelined capacity. Positive correlations between hash rate and price may indicate a BTC rally.
One macro indicator, the National Financial Conditions Index (NFCI), suggests Bitcoin could rally in 4-6 weeks. Historical analysis shows NFCI top often precedes major BTC reversals. NFCI currently at -0.52 and declining. Federal Reserve’s actions may act as a catalyst for a potential Bitcoin rally. Despite indicators, market watchers anticipate further Bitcoin price declines.

Read more at Cointelegraph: 3 Bitcoin Signs Pointing to a BTC Market Bottom