Bitcoin’s Current Struggles Could Set the Stage for a Major Comeback—Here’s Why
Bitcoin’s Current Struggles Could Set the Stage for a Major Comeback—Here’s Why Bitcoin market performance has faced a challenging start to the year, marked by a lesser upsurge and more bearish sentiment. Amid these fluctuations, insights from CryptoQuant analyst Avocado Onchain shed light on the current state of Bitcoin’s price movements and the factors influencing them. In a post titled “Bitcoin Price Correction: Short-Term Volatility Amid Long-Term Bullish Outlook,” Avocado analyzed key on-chain metrics, highlighting trends that may define Bitcoin’s immediate and future trajectory. On-Chain Metrics Hint At Bitcoin’s Next Move The analyst pointed out that the ongoing decline in Bitcoin’s price has been fueled by several factors, including uncertainty surrounding Federal Reserve rate adjustments, cautious market behavior ahead of political transitions, and concerns over state-held Bitcoin sales, which historically emerge during correction periods. These elements have combined to push market sentiment toward bearish territory. However, Avocado emphasized that the short-term outlook does not necessarily overshadow Bitcoin’s long-term potential for recovery and growth. Avocado’s analysis utilized on-chain data to assess the possibility of additional price corrections. One of the primary indicators examined was the Taker Buy/Sell Ratio (30-day moving average), which revealed a dominance of sell-side activity. Following Bitcoin’s price surge in March 2024 and its recent all-time high, this ratio trended downward, signaling an overheated market. This pattern historically precedes periods of price decline, indicating potential for further corrections. Another metric, the Short-Term Spent Output Profit Ratio (SOPR), which measures short-term investors’ profitability, has dropped below 1. This indicates that many short-term holders are selling at a loss, a behavior that has been observed during prior correction phases. Similarly, the Funding Rates (30-day moving average), a measure of market sentiment among leveraged traders, is trending downward. Negative funding rates often precede a bearish market shift but can also pave the way for eventual recovery once sentiment stabilizes. Avocado wrote: While this analysis focuses on short-term price movements, Bitcoin is likely to rebound in the long run and resume its upward trend after completing the correction phase. Investors should remain strategic, avoid reacting to short-term noise, and focus on the broader bullish trajectory. Bitcoin Market Performance Meanwhile, Bitcoin has continued to demonstrate bearish movements especially with its price now trading for $92,317, at the time of writing down by 3.3% in the past day. BTC price is moving downwards on the 2-hour chart. Source: BTC/USDT on TradingView.comOne of the major factors that have contributed to the ongoing bearish sentiment in the Bitcoin market appears to be the resurfacing of the US government wanting to sell the seized BTC from Silk Road which now amounts to roughly $6.5 billion. The US Govt has been given the greenlight to liquidate 69,000 BTC ($6.5B) from Silk Road, an official confirmed to DB News today Interesting situation less than 2 weeks away from the new admin who vowed to not sell https://t.co/HqD1KnhJK3 pic.twitter.com/xn8ATSEL7H — db (@tier10k) January 9, 2025 Featured image created with DALL-E, Chart from TradingView Samuel Edyme Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics. When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.” PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. 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