Bitcoin has extended its downward trend this week, dropping to $96,500 in the past 24 hours. Despite testing the demand zone between $94,300 and $95,800 and sweeping liquidity around the $96,200 level, a bullish reversal has yet to materialize in the short term.
Analyst Mikybull suggests that, despite the current consolidation phase, Bitcoin could still reach a new all-time high of $120,000 if it follows the historical seasonal pattern observed between 2014 and 2018.
Historically, February has been a strong month for Bitcoin. Based on cyclical data, Bitcoin appears to be on track for a higher surge in 2025. Since 2013, the cryptocurrency has delivered an average return of 14.08% in February, with only two instances of negative performance in the past decade. Additionally, Bitcoin’s average Q1 return stands at 52.43%, lower than its historical Q4 average of 84% since its inception.
Market researcher Danny Marques also believes that Bitcoin’s recent dip to $91,000 may mark a local bottom.
“Bitcoin will hit $120,000 sooner than you think—and fast. This is how I view the next few weeks and months for those following the charts,” he stated.
However, despite the arguments supporting a local bottom, data analytics platform Alphractal warns that leveraged trading remains Bitcoin’s “biggest risk,” potentially leading to a retest of the $80,000 level.
In a post on X, the platform highlighted a significant increase in long positions in October 2024, creating a notable liquidity gap between $72,000 and $86,000—an area of relatively low trading activity. As a result, a sharp drop below $80,000 could trigger liquidations of long positions built since November 2024.
On the other hand, a cluster of short positions exists just above $111,000, opened in December 2024. However, it is important to note that the number of long positions currently outweighs short positions by a 2-to-1 ratio.
Read more: Trump Accused of Profiting from Memecoin
Additionally, the decline in open interest from $76 billion to $59 billion suggests a reduction in leverage usage across the market. This trend may indicate lower risk appetite among traders, potentially impacting Bitcoin’s price stability in the coming weeks.
Discover more from Realwinner Tips
Subscribe to get the latest posts sent to your email.
