Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesStocksEarnInstitutionAI & More
BTC Signs Potential Mid-Cycle Bottom As Fear Grips the Market

BTC Signs Potential Mid-Cycle Bottom As Fear Grips the Market

DailyCoinDailyCoin2025/11/06 20:34
By:DailyCoin

Bitcoin’s price swung between $100,000 and $104,500 in the past 24 hours, reflecting heightened volatility as global markets adopt a risk-off stance. Despite the panic, on-chain data suggests the market is far from collapse. 

Sponsored

The broader crypto market stands at roughly $3.46 trillion, with Bitcoin dominance near 60%, while the Fear & Greed Index has dropped to 20, signaling “Extreme Fear.”

MVRV Ratio Points to Potential Accumulation Zone

Meanwhile, Bitcoin’s MVRV ratio has plunged to 1.8, its lowest reading since April 2025, flashing a classic accumulation signal, according to CryptoQuant.

Bitcoin’s MVRV Ratio Signals Possible Bottom Formation Amid Fear and Liquidations

“Historically, when MVRV falls to the 1.8–2.0 range, it often coincides with mid-term market bottoms or early recovery phases.” – By @xwinfinance pic.twitter.com/IyYAMO7uof

— CryptoQuant.com (@cryptoquant_com) November 6, 2025

Every time the MVRV has dipped into the 1.8–2.0 band over the past five years, it has marked either a mid-term bottom or the launchpad for the next leg higher. 

The metric compares Bitcoin’s current market value to the average price all investors paid, helping indicate whether BTC is overvalued, undervalued, or near a potential market bottom.

Yesterday’s brutal shakeout liquidated $1.7 billion in positions, with 85 % of the damage hitting over-leveraged longs. Yet on-chain stablecoin data show caution but not panic.

CryptoQuant notes that USDT supply stays elevated at roughly $183 billion, while USDC remains steady around $75 billion, buoyed by institutional payment demand. 

At the same time, liquidity is largely on the sidelines, awaiting signals from upcoming U.S. macroeconomic data, including employment figures and trade updates.

Furthermore, even amid fear-driven selling and heightened volatility, realized losses have stayed moderate, indicating measured repositioning instead of full-scale capitulation.

“Overall, on-chain signals point to a market in transition, not collapse,” analysts state. 

With ongoing ETF inflows, growing tokenization, and corporate treasury adoption, structural liquidity remains intact. Analysts point to Bitcoin’s $99K–$101K range as a potential support zone for the next phase.

Why This Matters

Bitcoin’s MVRV and on-chain signals suggest the market may be stabilizing and approaching a potential accumulation zone.

Stay in the loop with DailyCoin’s trending crypto news:
Coinbase Calls on Treasury to Avoid Overreach in Stablecoin Rules
XRP To Pivot World’s First Clean-Energy Weather App

People Also Ask:

What is a Bitcoin cycle bottom?

A Bitcoin cycle bottom is the phase in the market where prices hit a temporary low after a decline, often signaling the start of a new upward trend.

How can I identify a Bitcoin cycle bottom?

Analysts look at metrics like the MVRV ratio, realized losses, exchange reserves, and on-chain data to spot accumulation zones where the market may be stabilizing.

Why is the MVRV ratio important for spotting a Bitcoin cycle bottom?

The MVRV ratio compares Bitcoin’s market value to the average price investors paid. When it drops to historically low levels, it often signals a potential cycle bottom.

Does a Bitcoin cycle bottom mean the market is safe to buy?

Not necessarily. A cycle bottom suggests potential accumulation, but prices can remain volatile. Investors should consider risk management and broader market trends.

How often do Bitcoin cycle bottoms occur?

Historically, Bitcoin’s market cycles average roughly 3–4 years, with bottoms often occurring after prolonged bear markets and periods of high fear.

DailyCoin's Vibe Check: Which way are you leaning towards after reading this article?
Bullish Bearish Neutral
Market Sentiment
0% Neutral
0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

When France and Germany pay for their deficits, fiscal discipline becomes the "moat" of the UK bond market; investors are positioning in advance for a rebound in gilt bonds.

Investors are betting that the new UK Chancellor, Healey, will uphold fiscal discipline and are purchasing gilts in advance. A smooth and steady budget plan is expected to turn the UK from a "risk" in the bond market into a "positive."

智通财经•2026/10/19 08:13

Anthropic's $2 Trillion IPO Faces Doubts: Risks of Mismatched Computing Commitments and Revenue

The independent institution New Constructs reported that the Anthropic IPO is absurd, with a valuation of only 150 billion. The main controversy lies in the mismatch between long-term computing power commitments and clients' short-term on-demand procurement models, coupled with macroeconomic headwinds and early investor sell-off pressure, leading to increased market volatility.

智通财经•2026/10/19 07:51
Anthropic's $2 Trillion IPO Faces Doubts: Risks of Mismatched Computing Commitments and Revenue

Anthropic allocates 5% of shares to set up a fund before IPO, Musk calls for direct distribution to the public

Anthropic announced the establishment of a public welfare fund, initially allocating 5% of its shares. When the company's valuation increases by 50%, another 2% will be added. The aim is to address the impact of AI on employment. Musk suggested directly distributing shares to the public.

智通财经•2026/10/19 07:50
Anthropic allocates 5% of shares to set up a fund before IPO, Musk calls for direct distribution to the public

AI Stocks Struggle to Rebound: Lacking Three Major Supports, July’s Rally Hard to Replicate

JPMorgan pointed out that due to the absence of ETF bargain-hunting funds, limited room for short covering, and the early termination of the $40 billion buyback by Samsung and SK Hynix, the rebound strength of AI stocks in October may not match that of July. The resurgence of leverage risk could intensify volatility.

智通财经•2026/10/19 07:50
AI Stocks Struggle to Rebound: Lacking Three Major Supports, July’s Rally Hard to Replicate