Bitcoin Market Still in Pre-Bottom Environment, Fractal Model Suggests

The Bitcoin market is currently undergoing a bottoming process, but it's still unclear if this will lead to a durable recovery phase.

CryptoQuant's data shows that long-term holders are continuing to accumulate coins, which strengthens the supply structure of Bitcoin. However, this trend also suggests that distribution has yet to emerge, indicating that the bottoming process is incomplete.

The fractal model, on the other hand, indicates that the market has not yet reached the conditions associated with major cycle lows. The current metric reading of -0.1758 is close to the June 2022 reading of -0.1779, which preceded another leg lower rather than a durable bottom.

While this doesn't necessarily mean that Bitcoin must repeat past outcomes, it does suggest that the market may still be progressing through a bottoming process rather than transitioning into a confirmed recovery phase.