Bitcoin Bottom Signal Fires But This Time Investor Risk Appetite Is Absent

A Bitcoin bottom signal, similar to one preceding a 130% rally in 2024, has flashed again after BTC logged 25 consecutive days in the 'extreme high risk' zone, the longest on record. However, analysts caution that the current environment differs significantly from 2023. Data aggregator Swissblock noted the signal, and Michaël van de Poppe pointed to the BTC vs. supply in profit/loss chart aligning with past bottoms. Despite this, RugaResearch indicates that sustained buying demand is absent, with trader positioning not supporting an uptrend. Furthermore, macroeconomic factors and ETF flows suggest a cautious outlook. Cumulative inflows into gold ETFs have surpassed spot Bitcoin ETF flows over the last 90 days, with Bitcoin funds showing negative flows. Inflation data, specifically PCE levels, also suggests limited liquidity expansion without Fed easing. Experts like Willy Woo predict short-term relief rallies to $70,000–$80,000 will face selling pressure due to bearish liquidity conditions, with historical support levels identified at $45,000, $30,000, and $16,000.

(Source：Cointelegraph)