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The Bitcoin price has struggled to break free of its horrid run of performances over the past few days, continuing to move below the $110,000 mark. While the flagship cryptocurrency appears to be relatively more stable in the past day, concerns are still swirling around about the coin’s struggles beneath critical levels.
According to a prominent market expert on X, the Bitcoin price could be gearing up to make a comeback in the coming days. The latest on-chain signals suggest that the market leader might have hit a price bottom, hinting that a trend reversal could be imminent.
Bitcoin Price Structure Might Be Bottoming Out: Analyst
In an August 30 post on X, crypto analyst Willy Woo revealed that the Bitcoin price structure might be bottoming out. The online pundit hinted that the world’s largest cryptocurrency might be at the start of its recovery journey after weeks of sluggish price action.
Woo highlighted a couple of on-chain metrics to back this optimistic outlook for the Bitcoin price. Firstly, the analyst mentioned the capital inflow metric, which tracks the amount of money that flows into the flagship cryptocurrency within a given period.
Source: @woonomic on X
As observed in the chart above, the Bitcoin network recently recorded its “first daily print” of positive inflows after weeks of outflows. According to Woo, this increasing flow into the BTC network is the first sign that the Bitcoin price might have reached a bottom.
Furthermore, Woo highlighted that the Macro Cycle Risk formed a new lower high and has triggered a drop in risk. Typically, a decline in the Macro Cycle Risk indicator suggests that liquidity is returning to the Bitcoin network, which could signal the start of buying pressure for the market leader.
Source: @woonomic on X
In the post on X, the crypto analyst also mentioned that the Risk-Off signal has reached a local peak and is on the decline. This drop suggests that investors are moving away from caution and might be looking to invest their money into risk assets, including cryptocurrencies.
Ultimately, Woo concluded that the Bitcoin price is stabilizing and seems to be forming a bullish structure already. The pundit, however, noted that investors would need to keep buying the dip for the bullish structure to fully form.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at around $108,756, reflecting an almost 1% increase in the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart from TradingView
Featured image from iStock, chart from TradingView
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