Over the past week, Bitcoin prices rose slightly by 1.04% to enter the $110,600 price zone following previous weeks of an extensive correction. Notably, on-chain data shared by crypto analyst Burak Kesmeci suggests the premier cryptocurrency may have found a potential bottom, indicating strong potential for a price rally in the coming weeks.
In Kesmeci’s analysis, the KMFG is presented as a custom crypto market indicator used to identify potential accumulation and distribution zones using various market dynamics. When KMFG values fall below approximately 0.3, it signals accumulation, suggesting a possible local bottom. Conversely, values above 0.7–0.8 indicate distribution, pointing to potential local tops.
The KMFG last gave an accumulation signal in mid-April, just as Bitcoin’s price hit a local low near the $76,000 level. What followed was a strong, sustained upward trend, eventually culminating in a new all-time high (ATH) at around $124,000, i.e., an impressive 67% gain in just four months.
This week’s signal may indicate that Bitcoin is once again at or near a local bottom. The BTC price has been consolidating in recent weeks, hovering in the $107,000 – $112,500 range, while the KMFG metric fell sharply into the green “accumulation zone” on the chart. Historically, such levels have aligned with the early stages of upward trends.
As BTC KMFG dives below the 0.3 mark, historical patterns suggest this may be a prime area for building positions, especially for investors eying a potential rebound, despite the cautious sentiment in the market.
At press time, Bitcoin trades at $110,601 after a minor 0.26% decline in the past day. On the monthly chart, the premier cryptocurrency reports a greater loss of 5.4% reflecting a dominant selling pressure in the present market.
