The "Market Peak" of Bitcoin Has Not Yet Appeared

The price of Bitcoin has dropped to a new low of $91,055 on January 9th, marking the lowest level since December 1st. The next psychological support range is still below $90,000 and some market analysts continue to believe that Bitcoin may continue to decline below this level in the future.

However, the following 4 reasons show that BTC is unlikely to slide below $90,000. Fear and Greed Index drops to the lowest level in 3 months The Fear and Greed Index has dropped to 50 from a high of 78 after BTC lost 9% from 7 to 10/1. Monitoring the market sentiment, the index has recorded the lowest level since 10/14. As reported, the recent drop in this index is the largest in recent years and has shifted sentiment from "greed" to "neutral".

Technically, this is a positive development, because historically, the price of BTC has always reversed whenever the index drops to a neutral or fearful level. The 'market peak' of Bitcoin has not yet appeared. Bitcoin has raised concerns about a downward trend after failing to hold above $100,000 on January 6th.

A series of 4 liquidation events in 2 months indicate a weakening scenario and liquidity crisis, implying that the market is preparing for the next correction phase. However, in terms of fundamental indicators, Bitcoin has not triggered any signals indicating the presence of a market peak. Data from CoinGlass emphasizes that the top cryptocurrencies by market cap have yet to retest or surpass previous market peak signals. Bull market peak indicators include 30 different conditions across charts and indexes, but none have reached the previous highs of the bull market from 2017 to 2021. Analyst Mikybull believes that these price drops are still an "opportunity" before the expected increase. Bitcoin whale buys 34,000 BTC at the end of the year While short-term volatility is shaking the confidence of small retail investors in the market, large holders have been actively accumulating Bitcoin since late December. Cauê Oliveira, head of research at Blocktrends, pointed out that institutional investors have accumulated over 34,000 BTC, worth $3.2 billion, since the price of Bitcoin dropped below $108,000 on December 17. Oliveira added: “Big players have taken advantage of the consolidation to open TWAP positions, patiently accumulating Bitcoin below $95,000.” This implies that the demand from institutions remains high despite BTC recently dropping below $100,000. In addition, MAC.D, a verified analyst from CryptoQuant, believes that although short-term investors are experiencing losses, this has created an opportunity for accumulation instead of a reason to panic sell. “Selling coins at this time may be a serious mistake.” Selling 6.5 billion dollars of BTC in 6 days of trading seems 'impossible'. One of the main catalysts for the recent Bitcoin price decline in the past 2 days is the rumor surrounding the possibility of the US government selling over 6.5 billion USD worth of BTC. In response to this situation, commentator Miya stated that the government is “unlikely” to sell within 6 days of trading. With President-elect Donald Trump taking office on January 20th, Miya emphasized the complexity of selling such a large amount of BTC in an upcoming important political event. The issue becomes more complicated as Trump has revealed plans to establish a Bitcoin reserve fund, which may be a topic of discussion in his official appointment. In conclusion, cryptocurrency enthusiasts argue that the possibility of a price reversal for Bitcoin is very high because the market has priced it based on speculation of a price decline.

After scanning below the previous range low on the daily chart, Bitcoin liquidity pools are now heading towards an upward trend, according to Mikybull's assessment. Although a dip below $90,000 could still occur, analysts predict a V-shaped recovery is on the horizon. DYOR! #Write2Earn #Write&Earn $BTC {spot}(BTCUSDT)