Bitcoin‘s price has been a rollercoaster ๐ข over the past week, peaking at $100,000 on Tuesday before falling back to just above $99,000. The initial rebound ๐ has been short-lived, as BTC struggles to regain momentum and break through higher resistance levels. ๐ฌ
But fear not, dear investors! Darkfost, a contributor on CryptoQuant’s QuickTake platform, has spotted a potential opportunity for those employing a dollar-cost averaging (DCA) strategy. ๐ฐ The Smart DCA indicator has been triggered, suggesting that current price levels may be a “favorable” entry point for those looking to accumulate BTC over time. ๐
Darkfost explains that by comparing Bitcoin’s average price to its short-term realized price, this indicator aims to identify optimal zones for long-term accumulation. However, this indicator should be used alongside other metrics and a broader market analysis for optimal accuracy and effectiveness. ๐ง
While short-term price fluctuations have caused some investors to lose their cool ๐ฐ, other analysts point to underlying trends that hint at bullish potential. Another CryptoQuant analyst, Onatt, observed that buyer activity is beginning to outweigh selling pressure. ๐ช Using data from Coinbase, Onatt noted a visible premium indicating strong demand for Bitcoin, even in the face of recent volatility. Furthermore, negative funding ratesโdriven by approximately $2 billion in long liquidationsโsuggest a market environment where buyers are taking advantage of discounted prices to position themselves for a potential upward movement. ๐
Adding to this sentiment, analyst Ali identified a critical demand zone for Bitcoin between $96,475 and $99,360. According to Ali, as long as this range holds as a support level, the market outlook favors the bulls. ๐ A breakout above the $102,350 to $103,900 supply zone could further strengthen the bullish case, potentially setting the stage for a sustained recovery. ๐
So, buckle up and hold on tight, folks! The Bitcoin rollercoaster ride isn’t over yet, but there may be some exciting opportunities ahead. ๐ข๐
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2025-02-05 05:12