The head of macro research in the global market investor Julien Bittel provided an captivating insight into the Bitcoin market after a significant price loss over the past week. In a bold move, the financial analyst was supported by the Prime Minister of the cryptocurrency to soon draw a reflection, combining a recent decrease in price with wider macroeconomic conditions.
Why Bitcoin decrease below $ 80,000 could mark the end of the sale
Over the past week, the BTC market has registered significant price bearsAnd prices drop from over USD 96,000 to below USD 80,000. IN X Post On February 28, Bittel assigned this price a fall of tightening financial conditions in the fourth quarter of 2024 rush up.
When market fluidity decreases, economic surprises slowly lead to fears of potential recession and ultimately causing market uncertainty and risk maintenance. However, Bittel expects investors to turn away in March, constituting a case of bitcoins.
The analyst notes that market conditions in the last two weeks have quickly soothed, as indicated by the weakening dollar, decreasing yields of bonds and falling oil prices. These macroeconomic development suggests that liquidity returns to the financial system signaling the potential reflection of market moods.
In particular, having a recent Bitcon decrease below USD 80,000, Julien Bittel states that the effects of exacerbation of liquidity have been fully reflected. And although a potential price drop is still possible, sentiments indicators signal a miniature place for further declines. For example, the relative Bitcoin (RSI) indicator has recently affected 23, representing its most sold level since August 2023. Such market conditions support the concept of upcoming price reflection.
BTC market: contradiction?
In the final remarks of the intriguing Bittel analysis, he called investors to be too comfortable bear, but rather pressed the greedy way of thinking among universal fear on the market.
In particular, Santiment Blockchain Analytics notes That the “market crowd” tends to error in forecasts, i.e. when traders predict that bitcoins will fall, prices will rise and vice versa based on historical data. Therefore, the current Bitcoin market can be a unique opportunity to accumulate despite the general expectations of a lasting drop in prices.
At the time of writing, Bitcoin trades at USD 84,750 after some price increases on Friday among a positive report from inflation in the USA. With a market capitalization of 1.68 trillion USD, the most critical cryptocurrency remains the largest digital resource with a stunning market dominance 60%.
A distinguished picture from The Independent, Chart from TradingView
