Current Price Range Not Yet the Bottom
According to the latest on-chain data and liquidity analysis, Bitcoin's consolidation between $59,000 and $63,000 does not represent the cyclical bottom of the bear market. The article indicates that the market still needs one more dip below $59,000 to thoroughly flush out leveraged long positions, thereby setting the stage for the next rally.
Key On-Chain Indicators Flag Bottom Signals
The analysis references several on-chain metrics to identify the true bottom: Cointime Price, PSIP (Reserve Risk Indicator), and AVIV (Active-Adjusted Price). These indicators suggest that the current price remains above their historical bottom thresholds, implying that market selling pressure has not been fully absorbed. A genuine cyclical bottom would likely form only after prices break below these support levels.
Liquidation Flush as a Prerequisite for Bottoming
Technical liquidity analysis supports this view. A large cluster of leveraged long positions is concentrated in the $59,000-$61,000 range. Market makers tend to push prices below this zone to force liquidations, completing the so-called 'liquidity flush.' Historical data show that similar 'final drops' have occurred in every late-stage bear market, followed by a durable bottom.
Investor Strategy: Stay Within Your Circle of Competence
The article concludes by advising investors to remain disciplined and avoid chasing short-term bounces or hype-driven narratives. Instead, they should wait for Bitcoin to break below $59,000 and for on-chain indicators to confirm the bottom signal before considering an entry. In this chaotic phase, strict position management and risk control are paramount.