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Bitcoin’s recent price woes near $92,000 are short-term, and one analyst says traders should ignore the market noise.
Market Analysis
Bitcoin’s (BTC) daily chart is on a three-day bearish streak, as the largest crypto asset dropped closer to $92,000 on Jan. 9. General investor sentiment was further deterred on Jan. 9 after the US Department of Justice (DOJ) greenlit the sale of 69,000 BTC worth over $6.5 billion, and spot Bitcoin ETFs witnessed their second-highest net outflow at $569.1 million.
With queries like, “Is Bitcoin bull market over?” starting to surface on X, one analyst said that bullish optimism toward BTC should remain intact.
News-driven volatility haunts Bitcoin price
Bitcoin’s recent downturn is primarily influenced by uncertainties around Federal Reserve rate cuts and investors adopting a cautious approach before President-elect Trump’s inauguration. Onchain data clearly highlights this sentiment, as the 30-day moving average of the Taker Buy/Sell ratio indicated sell-side dominance for the first time since March 2024 (when BTC peaked at around $74,000).
Bitcoin taker buy/sell ratio. Source: CryptoQuant
Bitcoin’s short-term spent-output profit ratio (SOPR) also dropped under 1, implying that short-term investors are selling at a low. However, Avocado onchain, an anonymous crypto analyst, indicated these changes are part of BTC’s short-term volatility led by market speculations rather than a change in market structure. The trader added,
“Investors should remain strategic, avoid reacting to short-term noise, and focus on the broader bullish trajectory,”
Similarly, Mikybull, a crypto trader, pointed out a list that entailed key Bitcoin top signals for the current bull cycle. Out of a possible 30 market peak indicators, including Puell Multiple, RSI-22 day, Bitcoin dominance, and MVRV ratio, none of the signals have been hit in the current cycle. The trader said,
“Every dip is an opportunity in preparation for a massive rally that’s coming.”
Related: How low can the Bitcoin price go?
Bitcoin bull market peak indicators list. Source: CoinGlass
Alex Kruger, a crypto analyst, also dismissed long-term bearish predicaments and said that “people are way too bearish now.”
The economist explained that while “easy mode” is over going forward, the liquidity injection that will be taking place on behalf of traditional finance in 2025 is yet to be accounted for.
Related: Bitcoin will hit $1.5M by 2035, says analyst who called 2024 bounce
This article first appeared at Cointelegraph.com News
