Despite the Fall in Bitcoin, Analysis Company Researcher Said “I’m Not Buying Right Now” and Explained the Reason!

Cryptocurrency analytics firm Alphractal has announced that it has decided to avoid buying Bitcoin during a downturn in the market. The company outlined three main reasons supporting its cautious approach, emphasizing the importance of waiting for clearer market signals before investing.

“ETF Inflows Do Not Provide Short-Term Growth”
Alphractal stated that expectations regarding Bitcoin Exchange Traded Funds (ETFs) are exaggerated in the short term. The company, citing historical data, noted that despite the accumulation of more than 1 million BTC during the consolidation phase in 2022, this accumulation did not lead to a price increase. According to Alphractal, "Significant price increases only occur when large investors actively intervene in the market." The company therefore warned that ETF inflows could create short-term market fluctuations rather than support long-term growth.

“Market Sentiment Is Quickly Becoming Overly Optimistic”
The firm expressed concern about the overly optimistic attitude of investors who predict that the Bitcoin price will reach levels of $130,000 to $150,000. Alphractal emphasized that the market has not gone through the cooling period necessary for a sustainable rise and that rapid recoveries following major corrections usually do not provide a solid foundation for permanent increases. "Rapid increases without a deeper decline cannot prepare the ground for permanent trends," he said.

The company noted that current market dynamics are similar to those observed in December 2023, but there is a difference this time: whale behavior. While whales have been seen to aggressively defend critical price levels in the past, whales are currently stagnant, casting doubt on the sustainability of recent price movements.

Although Alphractal acknowledged the possibility of buying Bitcoin at a higher price, he took a firm stance that now is not the right time to buy. The company emphasized the importance of not investing before a clear direction is formed in the market, saying, “It is essential to wait for clearer trend signals.”