An analysis said Bitcoin has entered a long-term low zone. It said signals seen before past major bull markets are overlapping again as the Dynamic Rainbow Chart and the 200-week moving average heatmap simultaneously moved down into a strongly undervalued area.

On Oct. 13 local time, blockchain media outlet U.Today reported that on-chain analytics platform Lookonchain pointed out that Bitcoin's price was showing bottom signals on two long-term indicators at the same time.

The key point is that while market attention shifted from Bitcoin to more volatile assets, long-term indicators instead moved into a deep cyclical low phase. Lookonchain viewed this zone as the starting point of the biggest upward rallies in past macro cycles. It explained that while retail investors' interest weakened during a prolonged sideways market, large investors steadily accumulated.

The Dynamic Rainbow Chart is based on a strict power-law regression model that has explained Bitcoin's price movement since 2012. The model's accuracy is at the level of 94.3 percent. Bitcoin's current price is pressed against the chart's lowest band, straddling the boundary between the 'Buy!' and 'Fire Sale' zones. By contrast, the next theoretical peak in an overheating market was presented as well above $1 million.

Another basis cited was the 200-week moving average heatmap. This indicator assesses the growth rate of the 200-week moving average, a four-year-cycle support line for Bitcoin, and displays it in colors from purple to bright red. The chart has now re-entered a cool blue zone, and the signal has appeared only four times in Bitcoin's history. The cases were 2015, 2018, 2020 and 2022, all periods when market pessimism was at its peak.

From a market perspective, an interpretation followed that excessive speculation and leverage have mostly been cleared out. The shift of the indicator to blue was presented as a sign that 'speculative bubbles' and excess leverage in the system have been washed out and that fear is turning into a cool wait-and-see mood. The situation in which the two indicators point in the same direction is read as meaning the long-term trend has removed a significant portion of short-term noise.

Against this backdrop, a temperature gap among market participants is also emerging. The analysis said retail investors are feeling fatigue in a range-bound market with no clear price movement, while companies are using this stagnation phase. Lookonchain in particular viewed this 'boring sideways' zone as potentially meaningful for investors who use a regular, staggered buying approach. It said a sideways market that continues in the blue zone has been the strongest catalyst for calmly building positions before a new uptrend begins.

Still, this analysis focuses on the price position indicated by long-term indicators. When the market will rebound and how short-term price moves will unfold are separate matters. For now, the key point remains that while Bitcoin has stepped back from public attention, bottom signals similar to the past four instances are forming again on long-term indicators.

Both the Dynamic Rainbow Chart and the 200 Week Moving Average Heatmap are showing a buy signal for $BTC. https://t.co/rmaHDBK75z https://t.co/lz26dTNhD9 https://t.co/kIoWV3NqrS