Bitcoin can see a miniature correction of USD 72,000 support, because the inevitable market recovery remains confined by the lack of moods of cryptographic investors, which has fallen to minima, which has not been noticeable since 2022.
The price of Bitcoin (BTC) reached over three months the lowest 78 197 USD on February 28, falling by over 28% from a record level by over USD 109,000, they reached on January 20.
According to Iliiy Kalchev, the Digital Asset Investment Platform analyst, Bitcoin may feel a deeper withdrawal in the “low range of USD 70,000 as market repositions.”
BTC/USD, 1-day chart. Source: Tradingview/Cointelegraph
However, “a significant decrease below $ 75,000 seems less likely,” the analyst said Cointelegraph, adding:
“While there may be a temporary withdrawal, because the market fills the gaps remained during quick climbing, Bitcoin is more likely to support the company in the range from 72,000 to USD 80,000.”
“This support can be the basis for a more balanced recovery, reducing the likelihood of a deeper withdrawal,” he said.
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Other analysts also anticipated the Bitcoin bottom near $ 70,000 at the beginning of 2025 before the next stage of the rally.
Based on the correlation with the global fluidity indicator, on the right side of Bitcoin (RHS), which means the lowest offer price, for which someone is willing to sell the currency, maybe fall below USD 70,000 in at the end of February after a summit of nearly USD 110,000 in January.
Source: Raoul Pal
The first warning about the correction of up to USD 70,000 comes from Raoul Pal, the founder and general director of Global Macro Investor, in November, when he predicted that Bitcoin would reach a “local top” above USD 110,000 in January, before current correction.
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Sentiments of cryptographic investors falls to a low level 2022
While analysts expect Bitcoin to find its bottom and start recovering in the coming weeks, the cryptographic market remains confined by the lack of trust in investors.
The Crypto Fear & Greed Index -which measures the overall cryptographic market moods-a part to almost three years of the lowest level 20, last seen in July 2022. Alternative.me The data show.
Source: Alternative.me
The last time the mood of investors fell to similar levels, it was a month after Bitcoin fell to USD 17,500, experiencing a monthly decline by more than 37% in June 2022.
BTC/USD, 1-month chart. Source: TradingView
The decrease in investors’ moods was caused by a number of external and crypto-specific factors, Bitfinex analysts told CointeLgraph, adding:
“In general, the combination of a rapid decrease in bitcoin prices, regulatory uncertainty, security violations and decreasing altcoin valuations led to extreme fear on the cryptographic market.”
“Although this is not a component of the index, we consistently observe new ups in long liquidations in many rinses, such as February 3 and the current February 24-27,” Analysts added.
Meanwhile, the wider cryptocurrency market is still recovering from Hack Bybit worth $ 1.4 billion, which took place on February 21, which means the largest hack in the history of cryptography.
In a positive signal for the cryptocurrency industry, Bybit continues to honor customer payments and fully replaced the stolen ether $ 1.4 billion until February 24, just three days after the attack.
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