BTC nears potential bottom as historic market signal reappears

Crypto analyst Doctor Profit said a metric seen during past Bitcoin market bottoms has reappeared, suggesting BTC may be nearing a low. Doctor Profit said that in 2015, 2019, and 2022, bottom formation began when the average cost basis of short-term holders fell below that of investors who had held for one to two years. At those points, newer market entrants were seen selling at a loss while longer-term investors absorbed the supply. Doctor Profit said the same pattern has now appeared for a fourth time, with BTC trading below the cost basis of both groups. The analyst added that in past cases, the signal did not trigger an immediate rebound and was instead followed by months of sideways trading as the market built a base. The current market appears to be forming a bear-market bottom while moving sideways and entering a phase of long-term accumulation, Doctor Profit said.