Bitcoin Price Signal Hints at Major Bullish Turn

Bitcoin is currently trading just below $64,800 as bulls fight to reclaim the $65,000 mark. Analysts are pointing to a rare bullish divergence between the price and Net Capital Flows as a reason for optimism. This specific signal previously appeared before a massive rally, leading some experts to believe the asset has established a solid floor for the current cycle.

Prominent analysts suggest the current price range between $54,000 and $64,000 represents a strong buying zone. Fidelity also notes that its proprietary metrics show Bitcoin is undervalued, aligning with historical patterns that often precede long term accumulation phases. While the potential for growth remains a topic of debate, many are watching these levels closely for signs of a breakout.

However, some market observers remain cautious due to high leverage ratios. Data from Binance shows that leverage has reached its highest point of the cycle, making the asset prone to sudden price swings. Similar conditions occurred during the 2022 market downturn, where high leverage eventually led to intense volatility and liquidations. Investors should watch for whether this excess leverage is cleared out before assuming a definitive trend change.