Bull Market End or New Beginning?
Cryptocurrency giant Bitcoin, with a market capitalization hovering around $1.9 trillion, has experienced a sharp decline, falling below a psychological threshold. $100,000. The flash dump, which occurred in just three days, has many investors and analysts questioning whether it marks the end of the current bull market or indicates a healthy correction in an ongoing bullish trend.
Temporary setback or trend reversal?
This week’s price action has been particularly notable, with Bitcoin breaking through the $100,000 support level that has remained strong for eight consecutive days. Market analysts pointed to several factors contributing to this decline. An important influence is the strategy of market makers, which involves pushing price An upward move encourages traders to open long positions around $98,000, thus increasing liquidity.
Related reading
After running out of liquidity, market makers strategically used Fed Chairman Jerome Powell’s speech as a catalyst to drive prices lower, effectively filling price inefficiencies at $93,744 (50%) and $90,513 (100%) .
The analyst explained: “Bitcoin’s decline was necessary because the efficiency was lower than the price that needed to be filled, which was $93,744 for 50% and $90,513 for 100%. The inefficiency rule states that traders must fill 50% Or 100% inefficient.”
They added that market makers “deliberately raised prices to induce traders to open long positions, thereby increasing liquidity to $98,000. Exhausted market makers decided to clear liquidity at $98,800 and used Powell’s speech as a Catalyst, driving downward trend.”
Experts now predict that the price will rebound to $101,000 before a pullback or continuation of the trend, as the $93,788 to $92,200 range currently serves as strong support. This area saw heavy buy orders, consistent with the 50% inefficiency of recent filling. one bounce From this perspective, it seems inevitable.
BlackRock and institutional moves signal confidence in Bitcoin
Amid market volatility, BlackRock, one of the world’s leading asset managers, has made headlines for its large investment in Bitcoin. According to insights from Arkham Intelligence, BlackRock has not only been a net buyer of Bitcoin when other ETFs sold off, but has also accumulated a large amount of funds and currently holds 122,600 Bitcoins. This makes BlackRock the 11th largest Bitcoin holder, controlling approximately 0.6% of the circulating supply.
Related reading
Their aggressive accumulation, including a recent purchase of $1.5 billion in Bitcoin, contrasts with the broader market’s net selling of $785 million in BTC this week. BlackRock’s actions sparked discussion on platforms such as X, with many praising or humorously pointing out their shift from traditional assets to digital currencies.
Additionally, BlackRock’s BUIDL fund received $100 million in USDC, highlighting its involvement in the cryptocurrency market and marking the strategy Turn to digital assets. Such a heavyweight in the financial community may interpret this move as a vote of confidence in the long-term viability of cryptocurrencies, potentially affecting market sentiment and dynamics.
Market Sentiment: Fear or Opportunity?
As measured by the Fear and Greed Index, the market’s current sentiment remains in the “greedy” zone of 62, indicating that investors have the lowest level of fear. Instead, many view a dip below $100,000 as a buying opportunity, anticipating an imminent rise in price recover. Analysts predict that the price will rebound to around $101,000 before any major retracement or continuation of the current trend, supported by strong buying in the $93,788 to $92,200 range, which is consistent with the recently filled 50% inefficiency level .
Featured image from iStock, chart from Tradingview.com
