Bitcoin may be approaching a market bottom as several technical indicators resemble conditions seen during the collapse of crypto exchange FTX in 2022, according to analysts at crypto research firm K33.
The analysts said Bitcoin has shown signs of relative stability despite recent geopolitical tensions, suggesting the most intense phase of selling pressure may have already passed.
“The worst is behind us; now we wait,”
K33 analysts wrote in a research note, adding that bottoming phases for Bitcoin have historically taken time to fully develop.
Bitcoin was trading near $73,036 after gaining more than 7% in the past 24 hours, though the asset remains about 42% below its October all-time high of roughly $126,000.
K33 Head of Research Vetle Lunde highlighted the weekly relative strength index dropping to 26.84, its lowest level since July 2022, signalling oversold conditions similar to those seen before previous market bottoms.
The report also noted unusually high trading volumes and extreme bearish positioning in derivatives markets, including elevated demand for protective puts and high premiums for short exposure.
Lunde said the current defensive positioning across markets is “atypical,” noting that extreme one-sided sentiment has historically preceded sharp reversals in Bitcoin’s price.
At the time of reporting, Bitcoin price was $72,775.71.