The Bitcoin (BTC) market experienced a minor rebound in the last 24 hours after a somewhat pessimistic trading week. Following a sudden drop to $91,000 on February 3, market analysts are still pondering whether Bitcoin has discovered a local bottom and is now preparing for a rise. Notably, crypto specialist Ali Martinez has provided some market insights that may be beneficial to this discussion.
Optimal Timing for Bitcoin Purchases – Analyst
In a post on X dated February 7, Martinez disclosed the ideal entry circumstances for investors aiming to buy Bitcoin at this time.
Leveraging data from CryptoQuant, the analyst points out that the realized price of all BTC acquired in the preceding 1-3 months is approximately $97,354. This information indicates a <1% market loss for traders, given that Bitcoin is currently valued around $97,000. However, Martinez cautions that the most advantageous buying opportunities for BTC have typically arisen when traders experience a 12% loss. As a result, the Bitcoin market reflecting a <1% average loss may not offer the optimal scenario for new participants, as there remains considerable potential for additional price corrections.
Martinez’s analysis implies that Bitcoin is likely not near a local bottom despite recent price declines. According to the historic data presented, the next local bottom for BTC could be around $85,600, which would create the ideal accumulation area for investors seeking substantial profit margins. Nonetheless, it’s important to observe that the emergence of new elements such as significant institutional interest and corporate accumulation of BTC following the spot ETF inflows could inhibit the leading cryptocurrency from falling as low as in previous cycles before launching its next bullish movement.
BTC Market Overview
As of the latest update, BTC is trading at $97,020, reflecting a 0.75% price increase in the past day. The premier crypto asset has experienced a 2.70% decline over the past week; however, monthly gains remain at 3.76%.
Per the market forecasting platform CoinCodex, investors are currently ambivalent with the Fear & Greed Index positioned at 44 (fear). Nevertheless, analysts at CoinCodex are optimistic that Bitcoin will soon recover its bullish trend despite its current range-bound fluctuations.
Their short-term forecasts predict BTC will rebound to $106,613 within five days, with the potential to rise as high as $129,434 over the next month. For long-term objectives, they anticipate an increase to $158,992 in three months. With a market valuation of $1.92 trillion, Bitcoin remains the largest crypto asset with a market dominance of 60.6%.
Featured image from Shutterstock, chart from Tradingview
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