Bitcoin (BTC) is still above the 200-week and 200-day moving averages, signaling a bullish condition for the cryptocurrency. In his latest podcast, a renowned analyst highlighted critical data that describe the crypto market conditions and support the prevailing bullish narrative despite dwindling sentiments.
It is crucial to note that Bitcoin’s consolidation since the middle of January has taken a toll on the altcoin market and is dampening users’ expectations of a bull run. The flagship crypto slid into a sideways trend after reaching a $109,356 all-time high. BTC ranged between $91,000 and $100,000 in February, with a market volume that suggests a lack of interest from crypto investors.
Related Article: Expert Says Bitcoin Strategic Reserve Will Happen, Sets BTC Price Target at $180K
Despite the slight negativity in crypto market sentiment, technical factors suggest the bull cycle is intact. For instance, the Relative Strength Index (RSI) on BItcoin’s monthly chart has not triggered a top. The indicator suggests that Bitcoin is not in the overbought region and still retains bullish momentum.
In the meantime, the crypto analyst spotted a breakdown in the Dollar Currency Index (DXY), a development he noted to be good for risk assets, including cryptocurrencies. In addition, global liquidity continues to rebound after decreasing towards the end of 2024. The analyst considers global liquidity a crucial indicator because of the historical trend of risk assets following its direction.
Related Article: Bitcoin Whales Go On a Buying Spree: 28,000 BTC Moved Into ‘Accumulation’
In predicting the market, the crypto analyst thinks the crypto market will experience a bounce soon. He targets the period between February ending and the beginning of March for a trend reversal and a potential upsurge in the cryptocurrency market. However, he does not discard the possibility of Bitcoin’s price dropping lower before the bounce.
In summary, the crypto analyst thinks the prevailing negative sentiment across the crypto market is a good sign for the bull market. According to him, such sentiments shake out weak hands and wipe out liquidity, resetting the market to keep going higher.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
