Bitcoin (BTC) may be starting to shake off the worst part of the downturn that began in October last year, according to new research from Grayscale. The firm points to Feb. 5—when BTC traded around $63,000—as a “durable” market bottom.
Potential Start Of A New Bitcoin Bull MarketThat level, he noted, is slightly above the average cost basis for recent buyers, which matters because it can reduce the incentive to sell after a drop. In other words, if many holders are no longer underwater, selling pressure may ease at a time when buyers are trying to regain control.
If BTC continues rising in the days ahead, more recent participants could shift into positive profit and loss, which Grayscale treats as a potential early sign of a bull-market transition.
$78,000 Still Holds The KeyCombined with higher overall trading activity, the picture is presented as a cautiously optimistic shift in sentiment, especially for investors engaging with Bitcoin through regulated channels and traditional custody.
That price point has capped stronger upside moves toward $80,000 since Jan. 30. The overall takeaway is that the market may be setting up for a larger move, but the next step likely depends on whether resistance can be cleared.
Featured image from OpenArt, chart from TradingView.com
