The current Bitcoin correction can last until March or April before trying to rally towards previous highs, according to Matrixport assessment.
Bitcoin (Btc) fell below $ 80,000 in Feb.
The three major US stock market indexes also suffered the losses, with the NASDAQ 100 decreasing by 7.05% in the past five days, while the S&P 500 and the average industrial of Dow Jones fell 1.33% each.
“The analysis of macroeconomic trends and central bank policies give us a clear edge in the Bitcoin price forecasting,” Matrixport wrote in a Feb research report. 28.
“This type of analysis is becoming more important, especially as investors on Wall Street – which monitors these factors of MacRO every day – is actively participating in bitcoin trading.”
Related: Bitcoin ‘needs to find real organic buyers’ to continue uptrend – VC
The US dollar stimulates as traders are hiding
The winner of the week’s financial chaos is the US dollar, which is boosting.
The DXY dollar index is measured against a basket of six main currencies. Source: Tradingview
“A stronger US dollar causes this liquidity to decline, suggesting a downward pressure on bitcoin prices. Global liquidity acting in late December 2024 – driven by a US dollar – provides a clear explanation for the continued Bitcoin correction,” Matrixport said in a report.
The US Dollar Index (DXY) advanced for a third straight day, near 107.40, while entrepreneurs were looking for a shelter in the greenback in the middle of a seller market. The strengthening came after US president Donald Trump reaffirmed tariff increases, imposing a 25% tariff on imports from Canada and Mexico and an additional 10% in Chinese goods, effective March 4.
Related: Bitcoin needs a ‘key’ $ 75k support to prevent price falling amidst concerns with Macro
Traditional market movements have become increasingly important for cryptocurrency entrepreneurs, which are part of the success of Bitcoin ETFs in the US, who have seen $ 39 billion in the flow since their launch in January 2024.
However, 56% of these flows are likely to be tied to arbitration techniquesWhile the residue of Bitcoin ETF purchases is for long -term investment, according to Markus Thielen of 10X Research.
Bitcoin Bulls still lost
Some Bitcoin traders have evolved in the concept of “Buy Dip,” which refers to the accumulation of Bitcoin when prices are right, such as buying a product in a discount.
Santiment’s social sentiment found that the mention of “DIP” purchase has moved to their highest level since July 2024.
Charles Edwards, founder of Digital Asset Fund Capriole Investment, said to Cointelegraph in an earlier interview That significant level of fear and prevention may indicate the market is close to a short-term bottom.
Meanwhile, cryptoquant CEO Ki Young Ju said the bull cycle was not finished, but added That he could be wrong if Bitcoin dropped down below $ 75,000.
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