Bitcoin: Technical signals suggest a reversal is near

Bitcoin sentiment has hit its lowest point since early 2023. Yet, some analysts see positive signs. Bitcoin is holding up well despite recent stock market swings.

The Bullish Score Index is a key sentiment gauge. CryptoQuant data shows it's at a two-year low. Values below 40 for long periods often mean a bear market. The index stayed above 40 in 2024. It only dropped below that in February 2025.

Recently, Bitcoin has shown strength. On April 3, the S&P 500 fell 4.5%. Bitcoin, however, ended the day up. This was a historic first.

On April 4, US stocks kept falling. The S&P 500 dropped 3.87%, and the Dow Jones fell 3.44%. Bitcoin stayed steady.

This resilience comes amid trade worries. New tariffs threatened by the Trump administration usually hurt risk assets.

CryptoQuant's "Value Days Destroyed" (VDD) indicator is at 0.72. This signals a key time for Bitcoin.

The VDD tracks long-term Bitcoin holdings. A decline means long-term holders are selling less.

In December 2024, the VDD hit 2.27. This showed strong profit-taking, like in 2017 and 2021. The drop to 0.65 in April suggests this selling is ending.

Historically, since 2023, such shifts have led to stable prices. They also can lead to accumulation before an uptrend.

The Fear & Greed Index supports this. On April 4, it was at 28 ("fear"). It hit 25 ("extreme fear") the day before. Contrarian investors see this pessimism as a buy signal.

"Whales," or major investors, are buying again. This is the first time since August 2024. Back then, Bitcoin was between $50,000 and $60,000. This renewed buying could mean a future rebound.

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