The Bitcoin (BTC) daily chart is showing weakness for the third straight day, with the largest cryptocurrency asset nearing $92,000 on January 9th. General investor sentiment was further subdued following the US Department of Justice (DOJ) approval on January 9th. With sales of 69,000 BTC worth over $6.5 billion, spot Bitcoin ETFs recorded the second highest net outflow at $569.1 million.
Questions include “Is the Bitcoin bull market over?” As X begins to surface, one analyst said bullish optimism about BTC should remain intact.
News-Driven Volatility Haunts Bitcoin Price
Bitcoin’s recent decline was largely influenced by uncertainty surrounding Federal Reserve interest rate cuts and investors adopting a cautious approach ahead of President-elect Trump’s inauguration. On-chain data clearly highlights this sentiment, as the 30-day moving average of the taker buy/sell ratio shows a sell-side advantage for the first time since March 2024 (when BTC peaked at around $74,000).
Bitcoin taker buy/sell ratio. Source: CryptoQuant
Bitcoin’s short-term spend-to-earnings ratio (SOPR) also fell below 1, suggesting that short-term investors were selling at low prices. However, anonymous cryptocurrency analyst Avocado onchain pointed out that this change is part of BTC’s short-term volatility driven by market speculation rather than a change in market structure. The merchant added:
“Investors should remain strategic and focus on the broader bullish trajectory rather than reacting to near-term noise.”
Likewise, cryptocurrency trader Mikybull pointed out a list containing key Bitcoin top signals for the current bull cycle. Among the 30 market peak indicators, including Puell Multiple, RSI-22 Day, Bitcoin Dominance, and MVRV Ratio, none of the signals have been reached in the current cycle. said the merchant.
“Every drop is an opportunity to set up for the next big rally.”
Related: How Low Can Bitcoin Price Go?
List of Bitcoin bull market peak indicators. Source: Coinglass
Crypto analyst Alex Kruger also dismissed any long-term bearish predicament, saying, “People are too bearish right now.”
The economist explained that although the ‘easy mode’ will end in the future, the liquidity injection that will occur on behalf of traditional finance in 2025 has not yet been calculated.
Related: Analyst Predicting 2024 Bounce Says Bitcoin Will Reach $1.5 Million By 2035
This article is written for general information purposes and should not be considered legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.