Crypto Market Recovery: Analysts Weigh In | Airdrop Alert Pro

Bitcoin (BTC) is testing investor sentiment again as it hovers in an unstable position, mocking the possibility of a long bear cycle.

Amid market uncertainty, analysts and traders are weighing the current state of the cryptocurrency market, debating whether the recent downturn is a signal of further loss or a setting for a major rebound.

Analysts weigh crypto market recovery

Julio Moreno, head of research at CryptoQuant, noted that on Wednesday, Bitcoin holders realized their biggest single-day loss since August 2024, totaling $1.7 billion. This significant sell-off shows that traders are panicking in general and many choose to reduce losses Bitcoin drops below key support levels.

“Bitcoin holders are aware of their biggest loss since August 2024: $1.7 billion,” Famous Moreno.

Meanwhile, market analyst Miles Deutscher stressed that the Crypto Fear and Greed index has fallen widely to its lowest since October 2024. However, he believes that extreme fear in the market may be the predecessor of price reversal, that is, price reversal, price reversal, price reversal, and price reversal, which may be the prerequisite for price reversal. It indicates that Bitcoin may be approaching a critical turning point.

“People are finally getting nervous again. Believe it or not, that’s exactly what we need to form the bottom layer in the end,” he Explained.

In another observeDeutscher noted that in recent market turmoil, exchange inflows of BTC reached its highest level in a year. This shows that the trader is eager to liquidate his holdings Bitcoin is below $90,000.

But, he also speculated that such panic-driven sales could lay the foundation for an unexpected rebound and potentially capture those caught off guard.

Alphabtc analyst Mark Cullen weighed the situation, highlighting Market Maker Stable price. According to Coulun Binance Exchange Market makers stepped in to prevent deeper collapse, and he realized that further declines could trigger widespread surrender incidents.

“They know that bitcoin breaks down any lower person will cause the cryptocurrency market to collapse, and customers leave with burned fingers,” he said. statement.

Despite the intervention, Cullen remained cautious, suggestion A temporary rebound may occur before being below the next leg. Although he is not expected to collapse immediately, he has not ruled out another range that drops to $87,000 to establish higher lows before potential recovery.

M2 money supply model predicts MARC’s Bitcoin surgeh

Some analysts are focusing on the possible bullishness in March 2025. Colin Crypto, a well-known crypto analyst, shows the close correlation between Bitcoin’s price movement and the global M2 currency supply.

His model shows that the price of Bitcoin usually responds to changes in liquidity, for about 46 days. According to the model, Bitcoin is expected to undergo a significant upward movement around March 7, 2025, although the timeline may change earlier based on recent trends.

The decrease in lag time between M2 movement and Bitcoin reaction indicates an increase Global liquidity The BTC price will be increased soon. Despite the imperfect correlation, it has historically been a strong directional signal for Bitcoin price trends.

“It’s an incredible correlation, too close,” the analyst quipped.

If the M2 money supply model holds, Bitcoin can be set as a recovery in early March. However, volatility In the short term, traders should be prepared for potential bounces as macroeconomic factors affect institutional sentiment.

“…the price needs to recover more than $96,000-$100,000, which will confirm that the market is ready for new growth. If the pressure persists, the market may enter a deeper correction phase,” he said. Stealthex CEO Maria Carola shares with Beincrypto.

Increase bearish pressure, Bitcoin ETF records massive net outflows. As Beincrypto reported, institutional investors who played a major role in the rally where Bitcoin rally reached new highs appear to be pulling funds out of the market, raising concerns about further downside risks.

“This process (institutional redemption) puts huge pressure on the BTC interest rate as issuers are forced to sell assets to cover withdrawal requests,” MEXC COO Tracy Jin told Beincrypto.