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Bitcoin Mean Reversion Oscillator Prints First Green Oversold Bar in Months – A Classic Bull-Market Bottom Signal

Bitcoin continues to struggle around the $90K level as the market battles intense selling pressure and widespread fear. Short-term sentiment remains fragile, with investors reacting to rapid price swings and mounting downside volatility. Yet, beneath the noise, key on-chain metrics are beginning to show signs that the correction may be nearing exhaustion. Related Reading: Nearly 7M Bitcoin Now Sitting At A Loss: Highest Unrealized Pain Since January 2024 According to analyst On-Chain Mind, Bitcoin’s Mean Reversion Oscillator has just printed its first green oversold bar in months, a signal that has historically aligned with late-stage retracements during bull markets. This oscillator measures how far price has deviated from its cyclical mean, helping identify when Bitcoin becomes overstretched to the downside. Each time this indicator dipped into its green oversold zone in previous cycles, Bitcoin was either forming a macro bottom or preparing for a significant rebound. The fact that this signal has appeared while BTC consolidates above $90K — despite severe profit-taking, forced liquidations, and structural fear — suggests that strong hands may be quietly absorbing supply. Historical Bottom Signals Align as Macro Tailwinds Strengthen On-Chain Mind explains that Bitcoin’s current Mean Reversion Oscillator reading aligns closely with historical patterns seen during bull market retracements. Each time the oscillator dipped into the green oversold zone while the 35 line held, Bitcoin formed a cyclical bottom before resuming its upward trajectory. This line has acted as a structural support level across multiple market cycles, and the fact that it is holding once again reinforces the idea that strong hands are stepping in as weaker participants capitulate. According to On-Chain Mind, when this indicator flashes green during an ongoing bull market, it often marks textbook accumulation territory — the kind of opportunity that appears only a few times per cycle. The current setup resembles previous late-stage pullbacks rather than the beginning of a prolonged bear trend. Adding to this outlook, NVIDIA’s blowout earnings delivered a major confidence boost to U.S. equities. With revenue and guidance far exceeding expectations, the results signal that AI-driven demand remains strong. In broader macro terms, such strength in tech leadership often spills over into higher-risk assets like crypto, improving liquidity and investor sentiment. Related Reading: Bitcoin Capitulation Deepens Around $90K Level: Classic Late-Stage Fear Structure Emerging Testing Support as Momentum Begins to Stabilize Bitcoin’s latest daily chart shows price attempting to stabilize after a sharp multi-week decline, with BTC currently trading near $92,000. This level is acting as a temporary support zone following the breakdown from the $100K area, where sellers aggressively dominated order books. The chart reveals a series of lower highs and lower lows — a classic short-term downtrend structure — but the recent candlesticks hint at reduced selling momentum compared to the peak pressure seen earlier in November. The 50-day and 100-day moving averages have both turned downward, reflecting weakening short-term trend strength, while the 200-day MA remains far below price, highlighting that the broader bullish cycle may not be invalidated yet. Importantly, the current candle structure shows smaller bodies and longer lower wicks, suggesting buyers are beginning to absorb sell-side liquidity around the $90K–$92K region. Related Reading: XRP Supply In Profit Falls to 58.5% – Lowest Since 2024 Despite Higher Price Volume profiles also support this shift. While capitulation-like spikes occurred during the heaviest drop, trading activity has now normalized, indicating panic selling is cooling off. Historically, such deceleration after a steep leg down often precedes a relief bounce, even if volatility persists. Featured image from ChatGPT, chart from TradingView.com Bitcoin World

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Alarming Crypto Correction Deepens: JPMorgan Reveals $4 Billion ETF Exodus

BitcoinWorld Alarming Crypto Correction Deepens: JPMorgan Reveals $4 Billion ETF Exodus Are you wondering why the cryptocurrency market continues to struggle despite recent stability? The alarming crypto correction we’re witnessing has a clear culprit according to JPMorgan’s latest analysis. The banking giant reveals that retail investors are driving massive outflows from spot Bitcoin and Ethereum ETFs, creating sustained downward pressure on digital asset prices. What’s Driving This Persistent Crypto Correction? JPMorgan’s comprehensive market report identifies a troubling pattern. While major liquidations from October have stabilized, the crypto correction continues unabated. The bank’s analysts point directly to retail investor behavior as the primary catalyst. These everyday investors are pulling billions from cryptocurrency investment vehicles, creating a domino effect across the entire digital asset ecosystem. This sustained selling pressure contrasts sharply with earlier market expectations. Many analysts predicted a quick recovery after October’s volatility. However, the current crypto correction demonstrates how retail sentiment can dramatically influence market direction. The situation highlights the evolving nature of cryptocurrency markets as they mature. How Massive Are These ETF Outflows Really? The numbers tell a compelling story about the severity of this crypto correction. Since November began, investors have withdrawn: $4 billion from spot Bitcoin and Ethereum ETFs This represents the largest outflow since February Continuous weekly withdrawals creating sustained pressure This massive capital flight marks a significant shift in investor sentiment. The crypto correction we’re experiencing isn’t driven by institutional panic or regulatory concerns. Instead, it’s everyday investors reassessing their risk exposure and taking profits amid uncertain market conditions. Why Should Investors Care About This Crypto Correction? Understanding the mechanics behind this crypto correction provides valuable insights for strategic planning. Retail ETF outflows create several important implications: Market sentiment indicator: Retail behavior often signals broader market trends Liquidity impact: Large outflows reduce market depth and increase volatility Buying opportunities: Corrections can create attractive entry points for long-term investors The current crypto correction serves as a reminder that cryptocurrency markets remain influenced by traditional investment behaviors. Despite the decentralized nature of blockchain technology, centralized investment products like ETFs still drive significant price action. What Does This Mean for Future Market Recovery? JPMorgan’s analysis suggests that this crypto correction could persist until ETF flows stabilize. However, history shows that cryptocurrency markets have remarkable resilience. Previous corrections have often preceded significant rallies as new investors enter at lower price points. The key question remains: when will retail confidence return? Market recovery likely depends on several factors including regulatory clarity, institutional adoption trends, and broader economic conditions. Meanwhile, this crypto correction provides a valuable case study in market dynamics. Frequently Asked Questions How long has this crypto correction been going on? The current phase of crypto correction began in November and has persisted due to continuous ETF outflows, marking one of the longest retail-driven downturns this year. Are institutional investors also selling during this crypto correction? According to JPMorgan’s report, the primary selling pressure comes from retail investors through ETF redemptions, while institutional activity has been more mixed. How does this crypto correction compare to previous market downturns? This crypto correction is notable for being primarily driven by ETF outflows rather than regulatory news or major liquidation events, making it unique in recent market history. Should I sell my cryptocurrency holdings during this crypto correction? Investment decisions should align with your risk tolerance and long-term strategy. Many investors use corrections to reassess their portfolio allocation and risk management approach. What would signal the end of this crypto correction? Market analysts suggest that stabilization in ETF flows combined with increasing trading volume could indicate the crypto correction is nearing its conclusion. How does this crypto correction affect new cryptocurrency projects? Market corrections often separate strong projects from weak ones, as investor scrutiny increases and funding becomes more selective during downturns. Found this analysis helpful? Share this crucial market insight with fellow investors on social media to help them understand the forces driving the current crypto correction. Your shares help build a more informed cryptocurrency community. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin and Ethereum price action. This post Alarming Crypto Correction Deepens: JPMorgan Reveals $4 Billion ETF Exodus first appeared on BitcoinWorld . Bitcoin World