The cryptocurrency market has recently faced a significant downturn, with Bitcoin (BTC) falling below $100,000 for the first time since June. However, there are signs that it may soon rebound due to three critical factors.

Is It Time for a Boost?

Bitcoin has seen a downward trend lately, with its price dropping nearly 10% over the past week. The bearish sentiment peaked on November 4, when BTC descended to around $99,000. For more details on this drop’s causes, check out our article here.

This negative trend spurred anxiety in the crypto community, with the popular Fear and Greed Index indicating ‘Extreme Fear’. Interestingly, such extreme sentiment can sometimes indicate that the market’s low point has been reached, making it a potential buying opportunity, as the crypto market often behaves contrary to expectations.

Fear And Greed Index BTC Fear and Greed, Source: alternative.me

X user ALLINCYPTO highlighted instances when the Fear and Greed Index fell to similar levels, followed by swift rebounds in BTC’s price.

Exchanges and Supply Metrics

The quantity of Bitcoin stored on exchanges remains at seven-year lows, approximating 2.38 million BTC, which indicates diminished selling pressure and not a shift towards centralized exchanges aimed at profit-taking.

BTC Exchange Reserve BTC Exchange Reserve, Source: CryptoQuant

Looking at Market Indicators

Lastly, BTC’s Relative Strength Index (RSI) is currently around 32. An RSI below 30 typically signals that an asset might be oversold and thus, ready for a possible rally.

What Lies Ahead?

At present, BTC is trading slightly below $103,000, with numerous industry experts suggesting that its recovery has just begun. According to Coin Bureau, BTC’s price has recently touched its 50-week moving average, a level often seen before a new all-time high.

Market observers believe the ongoing US government shutdown could negatively affect BTC along with the broader cryptocurrency landscape. However, they also argue that the eventual lifting of the shutdown could act as a substantial catalyst, recalling a similar situation in early 2019 when BTC experienced explosive growth post-reopening.

For further insights into Bitcoin’s price predictions, check our article here.