Bitcoin Slips to $57,747, Fueling Bottom Thesis

Bitcoin's price has dipped to $57,747, sparking speculation that it may have formed a long-term bottom for this cycle. Market analyst Seth believes that 'there are signals that the long-term macro bottom is in,' and notes that '$58,000 is the new $18,000.' This echoes his previous prediction of Bitcoin's $16,000 low during the 2022 bear market.

On-chain data from Glassnode suggests that Bitcoin remains undervalued, having stayed below both the true market mean and the average cost basis of short-term holders for about 5 months. The firm also observed an expansion of losses among long-term investors, similar to past bear markets.

The recovery in demand is still weak, with spot bitcoin exchange-traded funds (ETFs) seeing net outflows and daily trading volume remaining low. Sentiment in the derivatives market has improved somewhat, but the options market is still pricing in the risk of further declines.