Market Turmoil: 4 Key Indicators That Could Signal a Reversal in Bitcoin’s Price Action

Bitcoin’s price drops below $115K – Watch out for THESE 4 reversal signs!

The cryptocurrency market is experiencing a sudden downturn, with Bitcoin leading the charge. As of press time, BTC has plummeted to $113,844, marking a significant drop in just one day. While many investors are panicking, some savvy traders are seeing this as an opportunity to accumulate more coins.

Whales and institutions have been quietly piling up on their BTC holdings, seemingly undeterred by the latest market volatility. On-chain trackers have flagged a notable whale purchase of 200 BTC, worth approximately $23 million, indicating confidence in buying the dip.

Despite the current downturn, some experts believe that Bitcoin is primed for a reversal. The question is, what are the signs that we should be on the lookout for? In this article, we’ll explore the four key indicators that could signal a turnaround in the market.

Firstly, we’re looking at the Bid-Ask Ratio across order books turning positive and staying that way. Historically, this has been a reliable indicator of local bottoms forming. When combined with other factors, it’s not uncommon for Bitcoin to react by moving higher.

Secondly, we need to keep an eye on slippage spikes, which have in the past peaked above 150. Every time this threshold is breached, it signals greater market volatility and often marks a turning point for investors.

Thirdly, we’re watching the True Retail Accounts Long % metric, as any movement above 60% typically signals a local bottom has formed. The current reading stands at an impressive 61.95%, indicating that retail traders are indeed accumulating Bitcoin amidst the downturn.

Finally, price needs to reclaim and hold above the 50 EMA. If this happens, it would be a strong indication of institutional investors buying in at these levels.

As we monitor these indicators closely, one thing is clear: Bitcoin’s latest price drop has not deterred its biggest supporters from buying the dip. In fact, there are early signs that long-term holders and institutions are dollar-cost averaging aggressively into the decline.

If history repeats itself, a sweep of liquidity below $112k-$113k could be an ideal entry point for going long on Bitcoin. With so many experts already calling the bottom in Bitcoin’s price action, it’s imperative to remain cautious while paying close attention to these key reversal signs.

While some may view this dip as a harbinger of doom, others see the current market conditions as a golden opportunity to accumulate more coins at attractive prices.

Source: ambcrypto.com