The post Is Bitcoin at a crossroads? A rebound may be on the cards IF… appeared on BitcoinEthereumNews.com.

Despite the bearish tone seen over the past weeks, Bitcoin [BTC] continues to retain rebound potential. Especially since critical conditions influencing its price action remain unresolved. In fact, on-chain data indicated that while the crypto’s price has declined, there is still no confirmation that bears have fully taken over the market. Instead, signs of lingering bullish presence remain and this could influence price dynamics as conditions evolve. Key on-chain conditions keep Bitcoin at a crossroads At the time of writing, Bitcoin’s Net Unrealized Profit and Loss (NUPL) metric underlined a notable dynamic that could influence the crypto’s next directional move. The Adjusted NUPL, which compares the realized capitalization of short and long-term holders against Bitcoin’s market capitalization, has reached a level historically associated with prices exiting prolonged bearish phases. Source: CryptoQuant This zone, often referred to as the fear and anxiety level, has played a role in shaping Bitcoin’s broader trend in previous cycles. However, it did not confirm a reversal. Instead, it suggested that bulls continue to hold their Bitcoin without realizing significant profits or losses, even when accumulation might be underway. That said, the possibility of profit or loss realization remains. If such activity emerges, it could trigger further downside pressure, favoring short positions already in the market as well as bearish participants waiting for confirmation. As a result, Bitcoin remains at a critical inflection point – One where neither bulls nor bears hold a decisive advantage. To better assess which side could gain control, AMBCrypto also examined additional market indicators. Risk metric at a potential shift Bitcoin’s Sharpe Ratio, a metric used to measure risk-adjusted returns, has fallen into a zone that has historically supported price rebounds. At press time, the ratio had dropped below the zero-mark, a level reached only four times since 2018. In previous…

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Filed under: News - @ January 24, 2026 6:12 am