Ah, Bitcoin (BTC), that capricious creature of the crypto realm, once again dances on the precipice of investor sentiment, teasing us with the tantalizing prospect of a prolonged bear cycle. How delightful!
In this theater of market uncertainty, analysts and traders engage in a spirited debate, pondering whether the recent downturn is merely a prelude to further losses or a setup for a grand rebound. One can almost hear the dramatic music playing in the background.
Analysts Weigh Crypto Market Recovery
Julio Moreno, the head of research at CryptoQuant, has observed that on Wednesday, Bitcoin holders experienced the largest single-day loss since August 2024, a staggering $1.7 billion. Such a sell-off suggests a delightful panic among traders, many of whom have chosen to cut their losses as Bitcoin dipped below key support levels. Bravo!
“Bitcoin holders realized today the largest loss since August 2024: $1.7 billion,” noted Moreno, with a hint of glee.
Meanwhile, market analyst Miles Deutscher, ever the optimist, pointed out that the Crypto Fear and Greed Index has plummeted to its lowest since October 2024. He believes that this extreme fear could be the precursor to a price reversal, suggesting that Bitcoin might be approaching a critical turning point. How poetic!
“People are finally getting nervous again. Believe it or not, that’s exactly what we need to eventually form a bottom,” he explained, as if he were a sage.
In another delightful observation, Deutscher noted that BTC exchange inflows have surged to their highest level of the year amid the recent market turmoil. Traders, in a frenzy, rushed to liquidate their holdings as Bitcoin dipped below the $90,000 mark. How charmingly dramatic!
However, he speculated that such panic-driven selling could set the stage for an unexpected bounce, potentially catching those who sold off guard. Surprise! 🎉
Mark Cullen, an analyst at AlphaBTC, weighed in on the situation, highlighting the role of market makers in stabilizing the price. According to Cullen, a Binance exchange market maker intervened to prevent a deeper crash, recognizing that a further decline could trigger a widespread capitulation event. How noble!
“They know Bitcoin breaking any lower will cause a crypto market-wide crash and customers leaving with burnt fingers,” he stated, with a hint of sarcasm.
Despite the intervention, Cullen remains cautious, suggesting that a temporary bounce may occur before the next leg down. While he does not expect an immediate crash, he did not rule out another drop to the $87,000 range to establish a higher low before a potential recovery. How thrilling!
M2 Money Supply Model Predicts Bitcoin Surge in March
Some analysts are eyeing March 2025 for a potential bullish turn. Colin Talks Crypto, a well-known crypto analyst, pointed to the strong correlation between Bitcoin’s price movements and the global M2 money supply. How scientific!
His model suggests that Bitcoin’s price often reacts to changes in liquidity with a lag of approximately 46 days. According to the model, Bitcoin is expected to see a significant upward move around March 7, 2025, though this timeline could shift earlier based on recent trends. How convenient!
The decreasing lag time between M2 movements and Bitcoin’s response suggests that increased global liquidity could soon boost BTC prices. While the correlation is imperfect, it has historically been a strong directional signal for Bitcoin’s price trends. How reassuring!
“It’s an uncanny correlation and it’s too close, in my opinion, to be coincidence,” the analyst quipped, with a wink.
If the M2 Money Supply model holds, Bitcoin could be set for a recovery in early March. However, volatility remains the dominant theme in the short term, and traders should brace for potential bounces as macroeconomic factors influence institutional sentiment. How exciting!
“… the price needs to recover above $96,000-$100,000, which will confirm the market’s readiness for new growth. If the pressure persists, the
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2025-02-26 16:54