Bitcoin (BTC) Price Could Be Poised To Rebound After Weekend Woes, Here's Why

The price action of Bitcoin has been largely underwhelming on almost every weekend so far in 2025. After an impressive start to the week, the flagship cryptocurrency kicked off the weekend with a return to around the $84,000 level.

A new analysis suggests that the price of Bitcoin (BTC) could be setting up for a rebound from its recent lows.

According to crypto analyst Ali Martinez, changes in the coin’s sell-side risk ratio may indicate a shift in market dynamics.

This metric, which estimates the ratio between the sum of all realized profits and losses and the total realized market capitalization, usually assumes that all losses and profits realized in the market are a potential source of sell-side pressure. The realized losses and profits divided by the realized capitalization help quantify the aggregate sell-side risk in the market.

Typically, when the sell-side risk ratio has a high value, it implies a high level of realization and oversupply of coins, as seen during late-stage bull markets and bear market capitulation events.

On the other hand, low values for the metric are associated with periods of low realization and volatility, seen in market consolidation phases and a sideways market.

As seen in the chart above, the Bitcoin sell-side risk ratio has dropped to around 0.086% this weekend.

As observed in the chart above, the price of Bitcoin rebounded from its local bottom in the past two years whenever the sell-side risk ratio slipped below 0.1%.

In January, the premier cryptocurrency surged to a then-all-time high price of $73,737 after the sell-side risk ratio fell beneath the 0.1% threshold.

Similarly, the Bitcoin price ran up to the current all-time high after the sell-side risk indicator slumped to under the 0.1% level in September.

If history is anything to go by, the price of Bitcoin could be gearing up for a rebound to a new high from its current lows, as the sell-side risk ratio lies at 0.086%. However, it is worth noting that the market leader’s rebound was sustained by positive catalysts, like the US-based exchange-traded funds (ETFs) in January and the election victory of Donald Trump as US President, in November.