Bitcoin Price Stabilizing: Insights from On-Chain Metrics

On-chain data provides a glimmer of hope for Bitcoin’s recovery despite the cautious price action. The Net Unrealized Profit/Loss (NUPL), which indicates whether investors are in profit or loss, hit 0.50 on October 11, marking its lowest since April. This suggests that most traders have absorbed their losses, typically a sign that selling pressure is waning.

The Holder Net Position Change metric, tracking long-term investor behavior, has also shown improvement. It has become less negative, moving from –24,506 BTC on October 10 to –21,172 BTC by October 13, indicating a gradual return to accumulation by long-term holders. This shift suggests that the intense selling pressure is easing.

Analyst Insights on Bitcoin’s Current Market Dynamics

Shawn Young, Chief Analyst at MEXC Research, shared his perspectives with BeInCrypto. According to Young, the “Great Reset” served as a cleansing moment for the crypto market. “Bitcoin’s swift recovery towards $115,000 after the largest liquidation event in history exemplifies the market’s resilience,” he noted.

Young highlighted that the $20 billion leverage wipeout was a critical event, exposing the fragility of risk sentiment and purging speculative exposure, setting the stage for a more sustainable upward trend. Additionally, despite modest outflows from U.S. spot Bitcoin ETFs, significant weekly inflows indicate that smart money is betting on Bitcoin’s safe-haven narrative.

The Critical Level for a Bitcoin Price Trend Reversal

Currently, Bitcoin trades within a rising wedge pattern on the daily chart, typically signaling indecision. After the crash, BTC found support near $111,100, with buyers defending this level. For Bitcoin to gain momentum and potentially reverse its bearish trend, it needs to close above $115,100.

However, the pivotal level remains $125,800. A breakout here could turn the entire structure bullish by confirming a break above the wedge’s upper boundary. This would pave the way towards $136,400, the next Fibonacci extension target.

Shawn Young reinforces this view: “If BTC holds above the $110,000 support zone, momentum could rebuild towards retesting and breaching $126,000, opening the path to $130,000.” Nonetheless, failure to surpass $119,200 could invite renewed selling, risking a decline to $104,500 and $102,000.

In summary, while the Bitcoin Price remains under pressure, structural strength is quietly returning. The market eagerly watches for a breakout above critical levels to confirm a bullish trend reversal.

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