Bitfinex analysts indicate that Bitcoin (CRYPTO:BTC) prices may have hit a local bottom, with the cryptocurrency trading flat above $57,000 after recent volatility.

Derivatives market data shows reduced price fluctuations, narrowing the gap between implied and historical volatility by nearly 90%.

Despite short-term selling pressure easing, long-term Bitcoin holders continue to realize profits, while short-term holders are reportedly selling at a loss according to the Spent Output Profit Ratio (SOPR).

Analysts suggest this trend could lead to price rebounds as selling pressure subsides.