Crypto analyst Dom has identified four Bitcoin indicators that previously signaled the start of rallies and are now showing bullish signs again. This development comes as Bitcoin’s price continues to fall, dropping below $90,000 for the first time in seven months.
In a post on X, Dom shared that these four indicators on Hyblock have turned bullish, matching the patterns seen during the last two major market reversals. He noted that these same indicators accurately predicted Bitcoin’s bounce from $8,000 last week and are now showing stronger support for the bulls.
Dom clarified that while these indicators don’t pinpoint exact lows for Bitcoin, they have consistently signaled limited downside whenever they’ve appeared over the past two years. He mentioned he’s watching for either another potential drop near $90,000 or signs that a local low is forming soon.
As Bitcoin’s price dips below $90,000, concerns are growing that the crypto market may be entering a bear phase. Dom acknowledged this possibility in another X post but doesn’t anticipate declines as severe as in past cycles. He also expects future bull markets to be less explosive, attributing this to the maturing crypto market and increased institutional investment, which has helped reduce volatility. Dom forecasts that future bear markets might see Bitcoin drop 30% to 40%, rather than the steep declines of previous cycles.
Adding to the market commentary, CryptoQuant CEO Ki Young Ju observed that short-term conditions are weak, with slow dollar liquidity and tight funding markets. Bitcoin inflows have also cooled, though he doesn’t expect them to halt or reverse into sustained outflows over the next six months.
Ki Young Ju suggested that if the Federal Reserve cuts interest rates or if there’s a shift toward easier monetary policies, sentiment could quickly turn positive, leading to renewed liquidity flowing into Bitcoin ETFs. He also highlighted that stablecoin adoption and public companies launching reverse ICOs could bring traditional assets onto decentralized exchanges.
In this scenario, Ki Young Ju believes the crypto ecosystem might realign around assets that were previously traded only in traditional finance. He predicts Bitcoin would benefit the most from such a shift, while altcoins with weak fundamentals or lackluster performance could lose liquidity.
Currently, Bitcoin is trading around $90,000, down more than 5% in the past 24 hours, according to CoinMarketCap data.
Frequently Asked Questions
Of course Here is a list of helpful and clear FAQs about the return of four key Bitcoin indicators that have previously sparked market rallies
BeginnerFriendly Questions
1 What are these four Bitcoin indicators everyone is talking about
They are four specific technical measurements or onchain metrics that analysts use to gauge market sentiment and potential price movements Historically when these specific indicators align in a certain way it has often preceded a significant rise in Bitcoins price
2 Why is it a big deal that these indicators are back
Its a big deal because this specific combination of indicators has appeared before major price increases in the past Seeing them return suggests that the market conditions that fueled previous rallies might be forming again giving investors and traders a signal of potential upward momentum
3 Im new to this Can you give me a simple analogy for what an indicator is
Think of a Bitcoin indicator like a cars dashboard gauge Just as your fuel gauge tells you how much gas you have left a Bitcoin indicator gives you data about the markets healthlike whether its overbought oversold or if big investors are accumulating more coins
4 Should I buy Bitcoin just because these indicators are back
Not necessarily While these indicators are powerful historical signals they are not a guarantee of future performance You should always do your own research understand the risks of investing in volatile assets like cryptocurrency and never invest more than you can afford to lose
Intermediate Advanced Questions
5 Can you name the four specific indicators
While the exact four can vary by analysis they typically include a combination of the following
Hash Ribbons Signals miner capitulation is ending often a bottoming signal
Puell Multiple Measures the profitability of Bitcoin miners A low value can indicate a good buying opportunity
MVRV ZScore Helps identify when Bitcoin is significantly undervalued or overvalued relative to its fair value
Relative Strength Index A momentum oscillator that identifies overbought or oversold conditions often showing a bullish divergence before a rally
6 Whats the main benefit of following these indicators
The main benefit is gaining a datadriven perspective Instead of trading on emotion or hype these indicators provide concrete data points that can help you make more informed decisions