Bitcoin has recently seen a decline, dropping to $81,000 due to weakening institutional flows. Bloomberg analyst Mike McGlone has raised concerns, suggesting that BTC might retrace to $10,000. However, other analysts are optimistic, indicating that the groundwork for another bullish phase may be forming.
Austin Arnold from Altcoin Daily highlighted that the number of wallets holding more than 1,000 BTC has increased by 2.2%, reaching a four-month high of 1,384. Arnold describes this trend as a “generational dip buying opportunity,” suggesting that long-term investors might find this a favorable moment to enter the market.
Further bullish indicators were noted by Citibank, which attributed the recent price drop to a temporary liquidity crunch caused by the US government shutdown, an October flash crash, ETF withdrawals, and a significant liquidity drop exceeding $500 billion. As government operations stabilize and Treasury issuance normalizes, Citibank anticipates a return of liquidity that could bolster Bitcoin”s price.
Market sentiment is currently at extreme fear levels, as evidenced by the Crypto Fear & Greed Index, which stands at 10. Nevertheless, predictive models such as CryptoCon”s Descending Gold Curves suggest that BTC could soar to between $160,000 and $170,000 in the next six weeks.
Michael Saylor of MicroStrategy pointed out Bitcoin”s decreasing volatility and his company”s ongoing accumulation of over 640,000 BTC. Meanwhile, Cameron Winklevoss, co-founder of Gemini, remarked that this might be the “last chance” to purchase Bitcoin below $90,000, hinting at a potential future price of up to $1 million.
Although short-term uncertainties remain, structural indicators are increasingly favorable. If liquidity conditions improve and whale buying persists, the next significant upward trend for Bitcoin may already be in motion. Currently, Bitcoin is trading 3.29% higher at $87,350, as market participants speculate whether this downturn is part of a mid-cycle correction or the beginning of a new parabolic surge.
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