Top on-chain analyst believes Bitcoin price might be close to its bottom; Here’s why

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Amidst the early June Bitcoin (BTC) price downturn, the popular on-chain analyst Ali Martinez took to X to explain that the world’s premier cryptocurrency might have found the bottom ahead of the eventual next bull market.

Specifically, the blockchain expert noted that BTC tends to form ‘major bottoms’ once more than 10 million coins are owned at a loss by digital assets investors while highlighting that at the time of writing early on June 7, the figure stood at 10.46 million.

Martinez also opined that the number represents an important signal as traders are relatively unlikely to turn their unrealized losses into realized losses, thus reducing selling pressure and creating the conditions for a rally.

Bitcoin price gains more than 6% from early June lows

By press time on June 8, Bitcoin has recovered somewhat from the lows seen late in the first week of the month. Still, the circumstances of the rally mean it is uncertain if the cryptocurrency has truly bottomed – whether in the short, mid, or long-term – or if it is a temporary anomaly.

Indeed, the move came during relatively low-volume hours and shortly after President Donald Trump emphasized that the latest escalation between Israel and Iran will remain limited and without U.S. involvement.

The mounting tensions in the Middle East in recent weeks are among the possible culprits behind the bloodbath in the digital assets market.

Meanwhile, BTC is changing hands at $63,042 at press time, meaning it is 6% above the June 5 lows but also roughly 1% under the Sunday evening high and is, overall, 13.41% in the red on the weekly chart.

Bitcoin price one-week chart. Source: Finbold

Martinez reveals top Bitcoin prices to buy ahead of the next bull market

Elsewhere, Ali Martinez published a second X post building upon the notion that Bitcoin might be nearing a major bottom. 

Early on June 8, the analyst revealed he is keeping track of three simple moving averages (SMA) for the cryptocurrency – the 200-week at $62,800, 300-week at $55,000, and 400-week at $42,500 – while hinting that the levels are critical for traders hoping to do dollar-cost averaging (DCA) ahead of the next bull run.

Historically, employing DCA during digital assets’ downturn would have been a lucrative strategy, and utilizing it between 2022 and 2024 could have ensured the investment got tripled or quintupled depending on the exact timing of the trades. 

Featured image via Shutterstock

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