The signal may mark an early stage in a market bottom, but the report suggests further pressure could be needed before the downturn fully ends.
Bitcoin has shown what CryptoQuant described as its first bottoming flag of the current downturn, an early signal that selling pressure may be starting to ease. Even so, the market may still need more stress before the bearish phase is over, indicating that any recovery could take time rather than arrive immediately. The assessment points to a market that may be moving closer to capitulation (broad investor surrender), a process traders often watch for when trying to identify cycle lows.