Bitcoin Nears Cyclical Bottom as Sell-Off Pressure Wanes

Bitcoin's resilience in the face of sustained sell-off pressure has led analysts to suggest that the cryptocurrency may be nearing a cyclical bottom within two to three months. According to a recent report from Bitfinex Alpha, approximately 10.83 million BTC are currently held at an unrealized loss, while 9.22 million BTC remain in profit. This near-even split between loss and profit positions is historically associated with late-stage bear market conditions.

The report highlights that the selling pressure has not yet fully translated into spot trading volume, a divergence that analysts often interpret as a signal of an approaching bottom. 'The fact that the shock from recent fund outflows has not been fully reflected in spot trading volume suggests that the market is approaching a bear market bottom,' the report states.

The analysis also notes that asset allocations are beginning to shift back to net inflows, with long-term holders and whales resuming accumulation. This behavior is consistent with historical market cycles, where retail panic selling gives way to strategic buying by informed investors.