Introduction
Bitcoin’s struggle around $90K may be nearing its end as a key on-chain indicator flashes its first oversold signal in months. The Mean Reversion Oscillator suggests the current correction resembles historical late-stage pullbacks rather than a prolonged bear trend. Meanwhile, NVIDIA’s strong earnings provide broader macro support for risk assets.
Key Points
- Bitcoin's Mean Reversion Oscillator has printed its first green oversold signal in months, historically indicating late-stage bull market corrections
- The $90K-$92K level is acting as temporary support with reduced selling momentum and signs of buyer absorption emerging
- NVIDIA's strong earnings provide macro tailwinds for risk assets, potentially improving liquidity and sentiment for cryptocurrencies
On-Chain Signal Points to Exhaustion of Selling Pressure
Bitcoin’s recent consolidation around the $90,000 level comes as the cryptocurrency faces intense selling pressure and widespread fear among investors. Short-term sentiment remains fragile, with market participants reacting nervously to rapid price swings and mounting downside volatility. However, beneath this surface noise, critical on-chain metrics are beginning to show signs that the current correction may be approaching its conclusion.
According to analyst On-Chain Mind, Bitcoin’s Mean Reversion Oscillator has just printed its first green oversold bar in months. This technical indicator measures how far price has deviated from its cyclical mean, helping identify when Bitcoin becomes overstretched to the downside. The appearance of this signal while BTC consolidates above $90,000—despite severe profit-taking, forced liquidations, and structural fear—suggests that strong hands may be quietly absorbing supply from weaker participants who are capitulating.
Historical data reveals that each time this indicator dipped into its green oversold zone during previous cycles, Bitcoin was either forming a macro bottom or preparing for a significant rebound. This pattern has held consistent across multiple market cycles, with the current setup closely resembling previous late-stage pullbacks rather than the beginning of a prolonged bear trend.
Historical Patterns Suggest Accumulation Territory
On-Chain Mind explains that Bitcoin’s current Mean Reversion Oscillator reading aligns closely with historical patterns observed during bull market retracements. The indicator’s behavior while the 35 line held has consistently marked cyclical bottoms before Bitcoin resumed its upward trajectory. This structural support level has proven reliable across multiple market cycles, and its current resilience reinforces the thesis that institutional and long-term investors are stepping in as retail traders exit positions.
When this indicator flashes green during an ongoing bull market, it typically marks textbook accumulation territory—the kind of strategic buying opportunity that appears only a few times per cycle. The current market structure, characterized by consolidation above key support levels despite widespread fear, mirrors previous late-stage pullbacks that preceded significant upward moves rather than signaling the start of a prolonged downturn.
The alignment of these technical signals with Bitcoin’s current price action around $92,000 provides a compelling case for the exhaustion of selling pressure. While the short-term trend remains bearish with a series of lower highs and lower lows, the underlying on-chain metrics suggest the foundation is being laid for the next leg higher.
Technical and Macro Factors Converge
Bitcoin’s daily chart reveals price attempting to stabilize after a sharp multi-week decline from the $100,000 area. The current trading range near $92,000 is acting as a temporary support zone following aggressive selling pressure that dominated order books at higher levels. While the 50-day and 100-day moving averages have both turned downward, reflecting weakening short-term trend strength, the 200-day moving average remains far below current price levels, indicating that the broader bullish cycle remains intact.
Recent candlestick patterns show smaller bodies and longer lower wicks, suggesting buyers are beginning to absorb sell-side liquidity around the $90,000–$92,000 region. Volume profiles support this shift, with trading activity normalizing after the capitulation-like spikes seen during the heaviest decline. Historically, such deceleration after a steep drop often precedes a relief bounce, even if volatility persists in the near term.
Adding to the positive outlook, NVIDIA’s blowout earnings delivered a major confidence boost to U.S. equities and risk assets broadly. With revenue and guidance far exceeding expectations, the results signal that AI-driven demand remains robust. In broader macro terms, such strength in technology leadership often spills over into higher-risk assets like cryptocurrency, improving overall market liquidity and investor sentiment toward speculative investments.
📎 Source reference: newsbtc.com