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

The AI boom may follow the path of the 19th-century railway bubble, and builders may not be the ultimate winners

Goldman Sachs analyst Bobby Molavi compared the current situation to the 19th-century British railway mania: 500 companies spent more than the nation's annual income building 8,000 miles of railway, with most early investors losing out, while the real beneficiaries were the later "passengers." He pointed out that the current AI craze is driven by both debt and momentum, and that the S&P 500’s forward P/E ratio of 18x is only "a bit cheaper." Whether the builders can retain value is uncertain, and history does not offer an optimistic answer.

华尔街见闻•2026/11/12 03:56
The AI boom may follow the path of the 19th-century railway bubble, and builders may not be the ultimate winners

If Anthropic's IPO goes smoothly and the stock price rises next week, then everything remains the same for AI. Otherwise, some companies will go bankrupt.

The shrinking valuations of two major giants have triggered a chain reaction—investors are adopting more conservative revenue multiples for AI startups and are directly halting high-valuation financing for companies with zero revenue. Multiple venture capital firms have advised their portfolio companies to lower valuation expectations and to quickly build up cash reserves. Market participants warn that the outcome of Anthropic’s IPO will be a barometer for the industry: if successful, the boom will continue; if it fails, some companies may face elimination.

华尔街见闻•2026/11/12 03:46

After the Brazilian election, political discount deepens; Morgan Stanley remains bullish on Petrobras (PBR.US), focusing on fuel pricing and dividends

Morgan Stanley still maintains its most optimistic "Overweight" rating, but has lowered its year-end 2027 target price from $31 to $25.

智通财经•2026/11/12 03:42
After the Brazilian election, political discount deepens; Morgan Stanley remains bullish on Petrobras (PBR.US), focusing on fuel pricing and dividends

Corning (GLW.US) receives initial "Buy" rating from Jefferies! AI factories driving a fiber optic rush, with a potential global supply gap of up to 30%

For Corning, the recent profit growth mainly comes from the expansion of AI clusters. As the number of optical links crossing cabinets and campuses increases, customers need to deploy more optical fibers within limited conduit and cabinet space, thus driving demand for high-density optical cables and connection systems.

智通财经•2026/11/12 02:47
Corning (GLW.US) receives initial "Buy" rating from Jefferies! AI factories driving a fiber optic rush, with a potential global supply gap of up to 30%