Bitcoin might be establishing a local bottom following a period of significant selling, as suggested by a market analyst. They noted that certain conditions are emerging for a potential relief rally targeting the $100,000 to $110,000 range.

According to the analyst, Mister Crypto, Bitcoin’s current market behavior indicates a stabilization after a phase of capitulation. He pointed out that as large investors begin to open long positions, the prevailing sentiment remains in extreme fear—a historical marker that often precedes a market reversal.

One significant technical indicator mentioned is the Relative Strength Index (RSI) on the weekly chart, approaching the pivotal 30 level. “We have bottomed out for Bitcoin right here. We have reached the 30 level. Boom,” he remarked.

“We have bottomed out for Bitcoin right here. We have reached the 30 level. Boom,” said Mister Crypto.

This level has historically aligned with market bottoms. The analyst tempered his optimism by stating that while this setup could indicate temporary upward movement, it does not ensure the start of a new bullish trend.

Focus on the $102,000 Level

Another important factor contributing to the recovery anticipation is Bitcoin’s distance from its 50-week moving average, currently situated at approximately $102,000. The expectation is that Bitcoin might experience a rebound to this level before any significant trends form.

Additional optimism in the short term is fueled by expectations of an end to quantitative tightening and speculation regarding potential interest rate cuts in an imminent policy meeting. Such developments typically favor risk assets like Bitcoin by improving financial conditions.

Nonetheless, the analyst’s longer-term perspective remains cautious, emphasizing that the overall market is still in a bearish state. He warns that any short-term gains could lead to further weakness later, as broader conditions have yet to show clear signs of returning to stable growth.

Improved Crypto Sentiment

After a prolonged duration of being categorized as “Extreme Fear,” the Crypto Fear & Greed Index has finally improved to a level deemed “Fear” at 28. Meanwhile, André Dragosch, from Bitwise Europe, opined that Bitcoin could experience significant upside due to a mismatch between its current price and improving macro conditions, citing an asymmetric risk-reward similar to the market’s behavior following the COVID-19 crash in March 2020.

“Bitcoin could have major upside ahead, as its current price doesn’t reflect improving macro expectations,” noted André Dragosch.

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