Bitcoin History Hit Bottom: Price Faces a New Level

In recent weeks, the sharp declines observed in the price of Bitcoin have drawn the attention of investors, while the historical measurement known as the Bitcoin Yardstick indicator is sounding the alarm in terms of long-term valuation. This indicator has shown that the price of Bitcoin (BTC) has fallen to its lowest level in history, entering an unprecedented valuation territory. According to the latest data shared by Glassnode, this situation clearly indicates how cheap or expensive Bitcoin is compared to long-term averages.

While the Bitcoin market has recently been under high levels of volatility and strong selling pressure, the Bitcoin Yardstick hitting such low levels suggests that the price has now become excessively undervalued. Historical data shows that such bottom levels typically occur during the most severe downturns in the market. According to Glassnode’s analysis, these conditions do not usually persist for long and often coincide with the end of selling pressure.

The shared chart indicates that the Bitcoin Yardstick has experienced similar sharp declines in previous cycles, particularly during periods such as 2011, 2015, 2018, and 2022. The common feature of these dates is that short-term fears and uncertainties prevailed, but significant recoveries occurred in the long term. Therefore, the current level suggests that the price of Bitcoin has entered an attractive area for long-term investors. However, as emphasized by Glassnode, this does not always mean an immediate price increase; sometimes these levels are completed through horizontal and painful processes.

In its statement, Glassnode noted that such extreme valuation conditions are often the points where "selling exhaustion" and "long-term opportunity" concepts intersect. This indicates that those wanting to sell in the market have largely sold off, and new buyers have not yet clearly stepped in. This outlook suggests that Bitcoin may continue to experience a volatile performance in the short term, while indicating a significant transition to a breakout area from a long-term perspective.