Bitcoin price has recently declined, which has affected market sentiment. Uncertainty about the Fed rate cut, investor caution ahead of President Trump’s inauguration, and news of government sales of Bitcoin add to the pessimism.

- The buy/sell ratio shows a dominance of sellers. After the rally in March 2024, the market overheated and the ratio fell below 1, which could indicate further price declines.

- The short-term SOPR is below 1, which indicates selling at a loss. This is similar to March 2024, when the correction was long.

- The 30-day funding average is decreasing, which could lead to negative rates and complete pessimism ahead of a possible recovery.

Despite the short-term fluctuations, Bitcoin has the potential to recover in the long term. Investors should remain strategic and not succumb to short-term changes.