Bitcoin May Not Have Hit Rock Bottom Yet, Warns Analyst

Bitcoin's recent price drop has left many investors wondering if it's finally hit rock bottom. However, according to crypto analyst Axel Adler Jr., the current market dip may not be the true market bottom.

Adler points out that five key indicators are all pointing towards ongoing weakness in the market. These include Bitcoin's MVRV Z-Score, which has cooled down from 1.71 to 0.32, and the Adjusted Spent Output Profit Ratio (aSOPR), which has remained below 1 for 13 straight days.

Additionally, over 91,000 BTC have moved onto exchanges, increasing potential selling pressure, while more than $119 million in stablecoins has left exchanges, reducing available buying power. The Puell Multiple (30DMA) sits at 0.73, signaling growing miner stress, and open interest is falling even as Bitcoin rebounds from $60,000.

Adler warns that the biggest risk lies with Bitcoin miners, who have entered a stress zone due to a collapse in price-to-miner-revenue ratio from 160 to 80. If the Puell Multiple falls below 0.50 and Bitcoin drops under $55,000, miners could be forced to sell more of their holdings to cover costs.