Bitcoin trend-strength gauge ADX falls to lowest level in more than two years

Bitcoin's ADX, or Average Directional Index, has fallen to its lowest level in more than two years, reinforcing signs that the market's extended low-volatility phase may be nearing a directional breakout. CryptoQuant analyst Darkfost said the extremely low reading shows Bitcoin has remained range-bound for a long period and that trend momentum is nearly exhausted, leaving the price likely to choose a direction soon. Separately, CryptoQuant analyst Axel Adler Jr. said Bitcoin is now trading in the lowest band of the rainbow chart model, which he described as essentially a fire-sale zone relative to its long-term price trajectory. Adler said the volatility-adjusted Z-Score stands at -2.293, the lowest since 2016 and below the 2022 bear-market bottom reading of -1.979, indicating a deeper downside deviation from the historical trend than in the previous cycle. He said the reading points to extreme undervaluation within the model but does not by itself confirm that a final bottom is in place, meaning any market reversal would still require separate confirmation.

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