Bitcoin (BTC) daily chart is on a three-day downward streak, with the largest crypto asset falling to near $92,000 on January 9. Overall investor sentiment was further dampened on January 9 after the US Department of Justice approved the sale of 69,000 BTC worth over $6.5 billion, with Bitcoin ETFs seeing net inflows of $569.1 million, the second-highest inflow.
With queries like, “Is the Bitcoin bull market over?” popping up on X, one analyst said that the bullish optimism towards BTC should remain intact.
News-Driven Market Volatility Hits Bitcoin Price
Bitcoin’s recent pullback is primarily driven by uncertainty around Fed rate cuts and investors adopting a cautious approach ahead of President-elect Trump’s inauguration. On-chain data clearly highlights this sentiment, with the 30-day moving averages of traders’ buy/sell ratio indicating sell-side dominance for the first time since March 2024 (when Bitcoin peaked around $74,000).
Bitcoin buy/sell ratio. Source: CryptoQuant
Bitcoin’s short-term spending profit ratio (SOPR) also dropped below 1, meaning short-term investors are selling at a low level. However, anonymous crypto analyst Avocado on-chain noted that these changes are part of short-term Bitcoin volatility driven by market speculation rather than a change in market structure. The trader added,
“Investors should remain strategic, avoid reacting to short-term noise, and focus on the broader upside,”
Similarly, crypto trader Mikybull pointed to a list of key Bitcoin top signals for the current bull cycle. Of the 30 potential market top indicators, including Puell Multiple, 22-day RSI, Bitcoin Dominance, and MVRV, none of the signals have been reached in the current cycle. The trader said,
"Every downfall is an opportunity to prepare for the next great upswing."
Related: How Low Can Bitcoin Price Go?
List of Bitcoin Bull Market Top Indicators. Source: CoinGlass
Alex Krueger, a cryptocurrency analyst, also ruled out long-term bearish scenarios and said that “people are very pessimistic right now.”
The economist explained that while the “easy mode” is over in the future, the liquidity injections that will occur on behalf of traditional finance in 2025 have not yet been calculated.
Related: Bitcoin Will Hit $1.5 Million by 2035, Says Analyst Who Predicts 2024 Rise
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