Bitcoin's KMFG Indicator Signals Potential Accumulation Phase
Bitcoin Indicator Flashes Accumulation Signal
Bitcoin is showing signs of a potential bottom, according to on-chain data. Crypto analyst Burak Kesmeci highlighted that the premier cryptocurrency might be gearing up for a rally in the coming weeks, following a period of correction.
KMFG Indicator Suggests Bullish Momentum
Kesmeci noted in a recent X post that Bitcoin's KMFG indicator has re-entered the accumulation zone for the first time since April 12. This could be a key moment for medium to long-term investors, suggesting another price swing is on the horizon after 147 days.
The KMFG indicator is designed to identify potential accumulation and distribution zones using various market dynamics. A KMFG value below 0.3 typically signals accumulation, hinting at a possible local bottom. Conversely, values above 0.7–0.8 may indicate distribution, suggesting potential local tops.
The last time the KMFG gave an accumulation signal in mid-April, Bitcoin's price was near $76,000. This was followed by a substantial upward trend, culminating in a new all-time high of around $124,000 – a 67% gain in four months.
This week's signal could mean Bitcoin is approaching a local bottom again. The price has been consolidating between $107,000 and $112,500 recently, with the KMFG metric sharply dropping into the accumulation zone. Historically, such levels have aligned with the beginning of upward trends.
As the BTC KMFG dips below 0.3, historical patterns suggest it may be an opportune time for building positions, particularly for investors anticipating a rebound.
Current Market Conditions
At press time, Bitcoin is trading at $110,601, down 0.26% in the last day. The monthly chart indicates a loss of 5.4%, reflecting selling pressure in the market.
According to data from analytics firm Sentora, total Bitcoin network fees have increased by 53.4% from the previous week, reaching $3.70 million, signaling higher network demand. Additionally, exchange outflows hit $7.04 billion, indicating strong confidence among BTC investors in the asset’s long-term price appreciation.