Sea February 19, 2025 ▪
4
Min read ▪ by
Calm periods on the Bitcoin market are often misleading. Indeed, when volatility collapses, it gives way to brutal amplitude movements, capable of surprising experienced investors and short -term speculators. Today, several technical indicators suggest a scenario similar to that of August 2023: a temporary drop in the BTC before a major rebound which could bring it to $ 85,000. An analysis carried out by the cryptocurrency reveals that the current conditions of the market resemble a past configuration where prolonged stagnation has led to a massive liquidation of positions before opening the way to a strong upward trend.
A market waiting for Direction Claire
The current evolution of Bitcoin is marked by a lasting lateralization, characterized by reduced volatility and a lack of pure and simple trend. Thus, the Choppiness index, an indicator that measures the level of indecision on the markets, shows high levels on daily and weekly graphics. According to Cryptochent Percival analyst, this situation indicates that the market is at the crossroads and that a clear movement is imminent. “Our Choppiness index is unstable (62 and 72 respectively), which means that it must inevitably enter a trend, suggesting a more aggressive movement in one direction or another.”
Last year, a similar configuration preceded a correction movement before raised recovery. In August 2023, volatility had increased violently, sweeping the traders’ positions before allowing an prolonged increase in the price of the BTC. Again, the gaps between the ups and downs of the consolidation beach reach 16%, a signal which reinforces the possibility of an imminent acceleration phase.
A leap at $ 85,000 before a new rally?
If the hypothesis of a false downward escape materializes, two technical levels are particularly monitored by observers. The first key threshold is $ 92,000, corresponding to the average cost of short -term holders (STH). This level has historically served as support for past bullish cycles. However, in the event of a violation, the next stabilization zone would be around $ 85,000, an area where the 200 -day exponential medium (EMA) could offer a bounce point.
According to Percival, the market could seek to liquidate speculative positions before a new bullish phase. “The possibility of misleading movements before the Bull Run is high. Many traders are positioned in these areas, and the market tends to liquidate these positions before returning to its planned course, ”explains Percival in a position on February 17, 2025. A classic maneuver by markets that tends to trap investors too much Impatient, before propeling BTC to new heights.
Despite these correction prospects, the underlying signals remain largely bullish. The structure of the Bitcoin market has never been so strong, with growing support for institutional investors and demand constantly increasing. In addition, the STH SOPR, an indicator that measures the profitability of transactions by short -term holders, shows levels close to those observed before the previous bruel rallies.
If the sale of the sale was to cause a temporary drop, long -term investors could see it as an accumulation opportunity before a new potential record of all time. However, caution remains essential: the markets tend to surprise, and a violent escape could create momentary panic before the return of buyers. In this context, the evolution of the derivative market, the leverages and the overall feeling of investors will play a decisive role in confirmation of the next major Bitcoin trend.
Maximize your Consribune experience with our “Read to garn” program! For each article you read, earn points and access exclusive rewards. Register now and start gaining advantages.
Diploma of Sciences PO Toulouse and holder of a Blockchain certification consultation issued by Alyra, I joined the AVENTIER COIRTIVE in 2019. Convinced of the potential of the Blockchain Transformer of many sectors of the economy, I took The commitment to make awareness and informant the general public on this ecosystem in Constantie Evolution. My goal is to allow everyone to understand the blockchain and to seize the opportunities it offers. I strive every day to provide an objective analysis of adreity, to decorate market trends, to relay the latest technological innovations and to put into perspective the economic and societal En Marche Enjenes.
Non-liability clause
The points of view, the thoughts and opinions expressed in this article belong only to the author and must not be considered as investment advice. Do your own research before making investment decisions.
