Bitcoin Market Analysis

Bitcoin (BTC) remains above the 200-week and 200-day moving averages, indicating a bullish trend for the cryptocurrency. In a recent podcast, a prominent analyst discussed vital data highlighting the current crypto market conditions and supporting a bullish outlook, despite decreasing sentiments.

Bitcoin’s consolidation since mid-January has negatively impacted the altcoin market, leading to diminished expectations for a bull run. Following its all-time high of $109,356, Bitcoin has moved sideways, ranging between $91,000 and $100,000 in February, with market volumes suggesting a lack of interest among crypto investors.

Related Article: Expert Says Bitcoin Strategic Reserve Will Happen, Sets BTC Price Target at $180K

Despite the slightly negative market sentiment, technical indicators suggest the bull cycle remains intact. The Relative Strength Index (RSI) on Bitcoin’s monthly chart has not signaled a peak, indicating that Bitcoin is not overbought and retains bullish momentum.

Additionally, the analyst observed a breakdown in the Dollar Currency Index (DXY), which he believes is favorable for risk assets, including cryptocurrencies. Global liquidity is also recovering after a decline towards the end of 2024, which the analyst considers a key indicator as risk assets historically follow its trajectory.

Related Article: Bitcoin Whales Go On a Buying Spree: 28,000 BTC Moved Into ‘Accumulation’

The analyst predicts a market bounce soon, targeting a trend reversal and potential upsurge between the end of February and the start of March, though he does not dismiss the possibility of Bitcoin’s price dipping further before this bounce.

In conclusion, the analyst views the prevailing negative sentiment in the crypto market as a positive signal for the bull market, as it tends to shake out weak hands and clear liquidity, resetting the market for future gains.

Disclaimer: The information in this article is for informational and educational purposes only. It does not constitute financial advice. Coin Edition is not responsible for any losses resulting from the use of content, products, or services mentioned. Readers should exercise caution before taking any action related to the company.