Is Bitcoin Forming A Bottom?
3 Key Signals to Watch
Bitcoin recently rebounded to around $74,000 after bouncing from the $60,000 level in early February, prompting a critical question for investors: Is Bitcoin forming a bottom?
To answer this, it helps to step back and think about markets in terms of phases rather than specific indicators.
Every cycle generally moves through 4 stages:
Expansion (Mark up)
Topping (Distribution)
Contraction (Mark down)
Bottoming (Accumulation)
Bitcoin clearly exited the expansion phase months ago and already formed a top around October 2025.
The market is now focused on the final 2 stages: the process of contracting and going into bottom formation.
Historically, three types of signals tend to appear when Bitcoin is approaching a true market bottom.
Oversold Conditions on the Weekly Timeframe
The first signal is weekly oversold momentum.
Throughout Bitcoin’s history, major lows have occurred when the asset becomes deeply oversold on higher timeframes.
This occurred during:
The 2018 market bottom
The 2022 market bottom
In 2022, Bitcoin initially bottomed in June after collapsing from $69,000 to roughly $17,000.
Although prices briefly dipped lower following the FTX collapse, the majority of the decline had already occurred, and the broader altcoin market had already formed its bottom.
Today, Bitcoin has again reached oversold conditions on the weekly chart, a prerequisite that has historically appeared at every major low.
This alone does not guarantee a bottom, but it signals that the market has likely entered the late stages of the correction.
In the next section, we’ll look at the 2 other signals to evaluate whether Bitcoin is truly forming a bottom.
Then, we’ll provide you with one extra Alpha that should give you a roadmap for the next tricky move for Bitcoin, which is likely to catch a lot of investors off-guard.
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