Bitcoin Price Dip: Is the Bottom In?

Bitcoin (BTC) experienced a slight rebound after a bearish week, prompting debate among analysts about whether a local bottom has been established. Following a flash crash to $91,000 on February 3rd, uncertainty persists.

Bitcoin Buying Opportunity?

Crypto expert Ali Martinez offered insights on optimal Bitcoin entry points. In a February 7th X post (link), Martinez cited CryptoQuant data showing the realized price of BTC acquired in the past 1-3 months at $97,354. This indicates a <1% market loss, but Martinez cautions that historically, the most favorable buying opportunities have occurred with a 12% loss. Therefore, the current market may not represent the ideal entry point, with further corrections possible.

Martinez suggests Bitcoin may be far from a local bottom, estimating the next one around $85,600 – a potentially lucrative accumulation zone. However, factors like institutional interest and spot ETF inflows could prevent such a significant drop.

BTC Market Overview

At press time, BTC traded at $97,020, up 0.75% daily but down 2.70% weekly. Monthly gains remain at 3.76%. The Fear & Greed Index stands at 44 (fear) according to CoinCodex, which nevertheless predicts a bullish return. Their short-term forecast points to $106,613 in five days and $129,434 within a month, with a three-month target of $158,992. Bitcoin maintains its position as the largest cryptocurrency, with a market cap of $1.92 trillion and 60.6% market dominance.

Featured image from Shutterstock, chart from Tradingview

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