Fidelity Flags October and Bitcoin Bottom as Yardstick Hits Lows

Fidelity Digital Assets released its Q3 signals report, highlighting that Bitcoin is trading near historic lows on a specific valuation metric. The Yardstick metric, which compares market capitalization to the network hashrate, has spent most of the past three months in the undervalued zone. Fidelity notes that this cycle features lower price volatility than past periods, while miners show strong resilience despite rising pressure on revenues.

Additional sentiment indicators are nearing capitulation levels, while long term holder concentration suggests the market is deep in an accumulation phase. Fidelity points out that previous cycles saw similar undervalued phases last for nearly 300 days. With the current bear market lasting 203 days so far, October marks a key timeframe to watch for cycle dynamics and potential price bottoms.

On the price charts, Bitcoin recently pulled back from a five week high of $67,000 down toward $63,000 before recovering slightly near $64,000. Analysts note that while the market structure continues to stabilize, buying momentum needs to pick up significantly before the asset can push past major resistance levels.