Fidelity Points to October Bitcoin Bottom Signal as Key Market Indicator Hits Historic Low
TL;DR:
- Bitcoin’s Yardstick indicator remained in the undervaluation zone for 83% of the past 92 days.
- The network’s processing power (hash rate) recorded a 22% drop from its all-time high.
- The realized cap ratio between long-term and short-term holders reached a reading of 3.9 points.
Fidelity Digital Assets identified patterns suggesting the formation of a projected Bitcoin bottom toward the month of October. The firm presented these technical observations after detecting historic lows in key On-Chain valuation metrics during the third quarter.
Two signals we're watching are approaching significant levels.
BTC's Yardstick is hovering near historic lows, while several sentiment indicators are approaching capitulation territory.
Could the market be nearing a bottom?
Explore the data in our Q3 2026 Signals Report… pic.twitter.com/XsliCQG9Lx
- Fidelity Digital Assets (@DigitalAssets) July 28, 2026
Analysis of the Yardstick Indicator and Cycle Dynamics
The Yardstick indicator evaluates the relationship between the network’s market capitalization and its processing rate using a normalized Z-score. A value below -1 standard deviation signals an undervalued state for the asset relative to the energy consumption invested in securing the chain.
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