Bitcoin's 'demand generation' phase mirrors the 2022 market bottom, suggesting potential bullish momentum . On-chain data indicates significant stablecoin accumulation, similar to that seen post-LUNA and FTX collapse .
According to Bitcoin researcher Axel Adler Jr., the 30-day moving average of stablecoin inflows has dipped into negative territory, forming the same “blue zones” previously seen in 2022 . This suggests that participants are not ready to sell, signaling a return of meaningful demand amid suppressed volatility . Adler stated that if inflows remain at or surpass levels seen post-LUNA and FTX, it would strongly signal the launchpad of the next Bitcoin rally .
Bitcoin network activity signals HODL dominance . BTC price is strong above $100,000, but the New UTXO 30-day SMA, a proxy for new network activity, remains near 570,000 . That's roughly 40% lower activity than when BTC was trading between $60,000–$70,000 and far from the 850,000–1 million range that supported the 2024 bull run . This divergence suggests that long-term holders are locking up coins, not moving them, creating a supply squeeze scenario where price could rapidly rise if new demand kicks in . A move past 700,000 on the New UTXO metric would signal that fresh participants are entering . If it climbs beyond 850,000, it could confirm the start of a full-blown retail and institutional-driven bull phase .
Additionally, Bitcoin's price hovered around $107,000, showing technical strength as BTC's chance of rising to new all-time highs appears to be increasing, new analysis suggested . Bitcoin's price has been under $108,000 since sliding below it on June 11 . This price level remains critical for traders .
MN Capital founder Michael van de Poppe spotted Bitcoin hovering at $107,450, saying that after taking out some liquidity around $108,000, BTC may see a slight pullback before breaking out to all-time highs . An accompanying chart shows $109,000 as the key level to watch on BTC's four-hour time frame . “This is the area we need to break in order to have upward momentum,” Van de Poppe said, adding: “The inevitable breakout to an ATH on Bitcoin might even happen during the upcoming week” .
Similar sentiments were shared by analyst Jelle, who said Bitcoin's breakout from a bull flag could trigger a massive upward move into price discovery .
However, it is important to note that the cryptocurrency market operates in highly cyclical patterns, characterized by distinct phases of growth and contraction . Understanding what it means when a crypto "bottoms" can help investors and traders better navigate volatility and optimize entry points . Bottoms typically involve sharp capitulation and panic selling, stabilization as selling pressure weakens, and gradual accumulation by informed participants .