These Key Metrics Suggest Bitcoin Is Nearing a Bottom: Anthony Pompliano

Popular American investor Anthony Pompliano has highlighted several indicators suggesting that Bitcoin may be nearing the bottom of the current bear market.

Speaking in an interview on CNBC’s Squawk Box, Pompliano discussed Bitcoin’s recent decline, which briefly pushed the asset to around $59,000 last week. Interestingly, he argued that the premier cryptocurrency is approaching its market bottom, highlighting some factors to support his view.

Why Bitcoin Bottom is Near

According to Pompliano, the current downturn has been less severe than previous bear market cycles. He stated that past Bitcoin bear markets have often erased 80% or more of the asset’s value. In contrast, the current cycle has seen Bitcoin fall by roughly 50% from its all-time high of $126,198.

He attributed this relatively moderate decline to increasing institutional participation in the market. As more institutional investors enter the space, they help absorb volatility and create a stabilizing effect that reduces the severity of market drawdowns.

Pompliano also pointed to on-chain data as another reason for optimism. Citing analyst Benjamin Cowen, he noted that a larger share of Bitcoin is currently held at a loss than at a profit.

Historically, such conditions have coincided with the final stages of bear markets. As a result, Pompliano believes the current environment could present a favorable accumulation opportunity for long-term investors seeking exposure at lower prices.

Ali Martinez Highlights Additional Bottom Signals

Meanwhile, crypto analyst Ali Martinez echoed a similar outlook, arguing that Bitcoin is approaching a market bottom after falling from nearly $83,000 to $59,000 in 30 days.

According to Martinez, long-term holders fueled the decline by moving and selling approximately 54,000 $BTC over two weeks. This increase in supply added significant downward pressure to Bitcoin’s price.

Martinez further revealed that 10.46 million $BTC are currently being held at a loss. Consequently, the “supply in loss” metric has climbed above the critical 10-million threshold.

Historically, readings above this level have aligned with macro market bottoms and have often preceded major recoveries. Therefore, Martinez views the current data as another indication that Bitcoin could be nearing a turning point.

MVRV Bands Point to Key Accumulation Zone

In addition, Martinez highlighted Bitcoin’s MVRV pricing bands as an important valuation tool. He noted that previous accumulation phases developed when Bitcoin traded between the 1.0 and 0.8 MVRV bands.

Based on current market conditions, those levels correspond to a price range between approximately $54,000 and $43,000, which Martinez considers a potential accumulation zone for long-term investors.

Despite recovering above the $62,000 level, Bitcoin remains in bearish territory. At press time, the leading cryptocurrency was trading at $62,024, down 0.79% over the past 24 hours and 7.05% over the past week. However, market activity remains elevated, with daily trading volume rising 19.42% to $37.32 billion.