Market indicators are currently broadcasting some of the most optimistic signals for the cryptocurrency sector in several months. Following a period of intense selling pressure and investor exhaustion in late 2025, the market appears to have moved past its "capitulation" stage.
The "Buy" Signal Returns
According to Martin Leinweber, Digital Asset Product Strategist at MarketVector (a subsidiary of VanEck), the MarketVector Crypto Heat Index has officially issued its first "Buy" alert since April of last year. This specific index is highly regarded for its precision; the April 2025 alert accurately identified the market bottom following significant volatility fueled by U.S.-China trade friction.
The index functions as a market thermometer, categorizing conditions into three specific brackets:
- Undervalued: 0% – 25%
- Neutral: 25% – 75%
- Overheated: 75% – 100%
At a current reading of 16.8%, the market is sitting deep within the undervalued territory. This latest bullish signal was triggered when the index's 20-day Simple Moving Average (SMA) climbed above its 50-day SMA while still in the "cold" zone.
Historical Performance & Future Outlook
Data suggests that these signals often precede significant rallies. Historically, a "Buy" alert from this index has resulted in median Bitcoin returns of:
- 20.4% over a three-month period.
- 76.7% over a full year.
Is $100,000 Next?
Veteran technical analyst John Bollinger has also weighed in, suggesting that Bitcoin is at a pivotal crossroads. Bollinger recently highlighted a "near-perfect base" formation on the charts—a structural pattern that often serves as a springboard for massive price increases.
Should Bitcoin successfully break out from this foundation, Bollinger suggests the asset could easily surpass the $100,000 milestone. At the moment, the leading digital currency is trading near $93,662, holding steady after a brief period of consolidation.
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