Bitcoin's $108K Bottom? 3 Powerful Indicators Suggesting the Crypto Correction Is Finally Over

Did Bitcoin Price Bottom at $108K? Examining the Evidence

The recent Bitcoin price correction saw the leading cryptocurrency plummet to around $108,000, leaving many investors concerned about further downside. However, several key market indicators suggest that this dip may have represented the bottom of the current correction cycle, potentially setting the stage for a recovery.

Let's explore three compelling reasons why the worst might be over for Bitcoin's price action.

1. Exchange Outflows Signal Strong Accumulation

One of the most reliable indicators of market sentiment is the flow of Bitcoin between exchanges and private wallets. Recent data shows significant Bitcoin outflows from major exchanges, with investors moving their assets to cold storage or self-custody solutions.

Why this matters: When investors withdraw Bitcoin from exchanges, it typically indicates a long-term holding strategy rather than an intent to sell. This reduction in available supply on exchanges can create upward price pressure as fewer coins are available for immediate trading.

Data from on-chain analytics platforms reveals that following the drop to $108,000, outflows accelerated considerably, suggesting smart money was actively buying the dip and moving purchased Bitcoin to secure storage—a historically bullish signal.

2. Futures Market Shows Reduced Leverage

The Bitcoin futures market provides another compelling indicator that the worst may be behind us. The recent price drop triggered significant liquidations of leveraged positions, effectively flushing out excessive speculation from the market.

The funding rate, which indicates whether traders are predominantly long or short, has now returned to more neutral levels after spending weeks in highly positive territory—a sign of an overheated market.

Key insight: Markets built on excessive leverage are prone to dramatic corrections. The recent liquidation cascade has helped normalize market conditions, potentially setting the stage for more sustainable growth based on spot buying rather than leveraged speculation.

3. Institutional Buying Pressure Remains Strong

Perhaps the most compelling evidence that Bitcoin has found its bottom comes from continued institutional interest. Despite the price correction:

• Bitcoin ETFs recorded significant inflows during and immediately after the dip
• Major corporate holders maintained their positions rather than selling
• OTC (over-the-counter) desk activity showed increased buying from large players

This institutional commitment demonstrates confidence that Bitcoin's long-term value proposition remains intact despite short-term volatility. Their continued participation provides a strong support level and suggests that the $108,000 range represented an attractive entry point for sophisticated investors.

What This Means for Bitcoin's Outlook

While no one can predict market movements with absolute certainty, these three factors—exchange outflows, healthier futures market structure, and sustained institutional interest—provide compelling evidence that Bitcoin's correction to $108,000 likely represented a temporary bottom rather than the beginning of a prolonged bear market.

The combination of reduced leverage in the system, continued accumulation by long-term holders, and institutional buying pressure creates favorable conditions for price recovery.

For investors, this market structure suggests that the recent dip may have been a buying opportunity within the context of Bitcoin's larger bull cycle. However, volatility remains a hallmark of cryptocurrency markets, and prudent risk management remains essential regardless of short-term price movements.

As always, the market will ultimately determine Bitcoin's next moves, but current indicators suggest a more optimistic outlook than many feared during the depths of the recent correction.