Bitcoin could see a short correction at the $72,000 level as a market recovery is limited due to a low crypto investor confidence, which has fallen to levels not seen since 2012.
BitcoinBTCThe price fell 28% on February 28 from its previous record of more than $109,000, reached in January.
Bitcoin could experience a more significant retracement towards the “low $70,000’s range as the market repositions,” Iliya KALCHEV, dispatch analyst of digital asset investment platform Nexo.
BTC/USD, 1-day chart. Source: TradingView/Cointelegraph
Then, the aforementioned is true. “significant drop below $75,000 seems less likely,” The analyst said to Cointelegraph:
“While there might be a temporary backtrack as the market fills in the gaps left during the rapid climb, Bitcoin is more likely to establish firm support in the $72,000 to $80,000 range.”
“This support could provide a foundation for a more sustainable recovery, reducing the likelihood of a deeper retracement,” “He said”
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Some analysts predicted that Bitcoin would bottom out at $70,000 by early 2025, before moving on to the next phase of its rally.
Its correlation with global liquidity index is a good indicator. Bitcoin’s right-hand side The (RHS), the minimum price at which someone will sell currency, could fall to below $70,000 by the end of the month after reaching a peak near $110,000 during January.
Source: Raoul Pal
Raoul Pal – founder and CEO Global Macro Investor – warned in November that Bitcoin could reach $70,000. “local top” above $110,000 Before the current correction, in January.
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Bitcoin investor sentiment falls to 2022’s low
Analysts expect Bitcoin’s bottom to be reached and a start of a recovery will begin in the next few weeks. However, investor confidence is still limiting the cryptocurrency market.
The Crypto Fear & Greed Index — which measures overall crypto market sentiment — fell to a near three-year low of 20, last seen in July 2022, Alternative.me Data shows
Source: Alternative.me
Last time, investor sentiment fell to similar levels, it was in the month following Bitcoin’s fall to $17500. In June 2022, there had been a 37% monthly drop.
BTC/USD, 1-month chart. Source: TradingView
Bitfinex analysts explained to Cointelegraph that the decline in investor sentiment was due to a variety of external factors and crypto-specific ones.
“Overall, the combination of a sharp Bitcoin price drop, regulatory uncertainty, security breaches, and declining altcoin valuations has led to extreme fear in the crypto market.”
“Although not a component of the index, we are also consistently seeing new highs in long liquidations across numerous flushes such as on Feb 3rd and the current 24-27th February move down,” Analysts added.
While the crypto-market has recovered from its recent crash, it is not yet fully back to normal. $1.4 billion The Bybit Hack occurred on February 21, 2019. the largest hack in crypto history.
Bybit, in a sign of support for the cryptocurrency industry, has honored customer withdrawals. replaced the stolen $1.4 billion in Ether By Feb. 24, only three days after an attack.
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Source: cointelegraph.com
