The recent fall in Bitcoin prices has investors wondering if the market is nearing bottom or if further declines are on the horizon. Despite Bitcoin's price decline of 11.5% between April 30 and May 1, several key indicators indicate that the market may be approaching a turning point.

One such indicator is Bitcoin's market value to realized value ratio (MVRV), which currently stands at -11.6%. Historically, when this rate fell below -9%, Bitcoin's price has risen by 64%, 63% and 99% in the past. This suggests that the coin may be undervalued, presenting a potential buying opportunity for investors.

However, market sentiment remains cautious, with the Crypto Fear and Greed Index falling to 43/100, the lowest level since September 2022. This uncertainty is likely to continue until the Federal Reserve concludes its Monetary Board meeting, where it is expected to keep interest rates at 5.25%.

Despite challenging market conditions, Bitcoin miners have demonstrated resilience. Although the recent halving reduced their rewards by 50%, miners are reluctant to sell their assets. This circumstance, combined with the strong demand for USD Coin in China, indicates a positive attitude towards cryptocurrencies.

Moreover, the gradual deleveraging of the Bitcoin futures markets suggests that the risk of a derivatives sell-off similar to the one that occurred in the 2021 bull market is relatively low.

Funding rates have fallen gradually rather than sharply, indicating a healthier market environment.

Recent outflows from US spot Bitcoin ETFs of over $500 million on May 1 highlight the reactionary nature of some investors.

As the price of Bitcoin fell below the underlying value of these ETFs, investors quickly withdrew their funds, with the largest outflow coming from the Fidelity Investments Fidelity Wise Origin (FBTC) Bitcoin Fund at $191 million.

While some signs point to a possible bottom, overall sentiment remains cautious.

The outcome of the Federal Reserve meeting and the resilience of Bitcoin miners will likely play a decisive role in determining the direction of the market in the coming weeks.