Bitcoin faced significant selling pressure this week, testing the $86,000 support and declining over 10% since the weekly open. Despite bearish sentiment indicated by the Crypto Fear and Greed Index, some analysts predict that Bitcoin may reach new all-time highs soon, supported by key market indicators and correlations. Ethereum and new meme coins like BTC Bull also show promising investment potential.

Bitcoin experienced substantial selling pressure this past week, aligning with the broader decline across global financial markets. The cryptocurrency’s price tested the $86,000 support level multiple times, reflecting a decrease of over 10% from its weekly opening. This shift in dynamics has instigated a notably bearish market sentiment, as evidenced by the Crypto Fear and Greed Index now indicating “Extreme Fear.” Despite this, several market analysts project a bullish outlook for Bitcoin.

Key indicators that have historically signified Bitcoin’s cycle top suggest the potential for the cryptocurrency to attain new peaks in the ensuing months. Analyst Joe Consorti underscores the close correlation between Bitcoin’s value and global liquidity levels, albeit with some temporal lag. He notes a decline in the global money supply beginning in September, which saw a reduction of nearly $4 trillion by December, potentially leading to a dip in Bitcoin’s price to approximately $70,000.

However, Consorti remains optimistic, highlighting that the Global M2 supply appears to have bottomed out in December and is now on an upward trajectory. If this trend continues, Bitcoin may experience a bullish reversal and approach new all-time highs. Julian Bittel, Head of Macro Research at GMI, observes parallels between the current M2 supply trajectory and that observed during Donald Trump’s initial term, suggesting a potential surge to $112 trillion which could drive Bitcoin’s value to $150,000.

Bittel elaborates that financial conditions are forecasted to improve swiftly due to a weakening U.S. Dollar and declining inflation levels, as indicated by Truflation data. He emphasizes that the GMI Bitcoin Top Finder tool, known for its previous accuracy in predicting cycle tops, anticipates Bitcoin reaching significantly higher values in the near future. Furthermore, the Bitcoin Rainbow Chart, which tracks Bitcoin’s long-term performance, also points towards the possibility of major growth.

Daan Crypto Trades, a prominent analyst, advocates for Bitcoin price projections of $115,000 and $150,000 in the upcoming months. The predicted positive movement of Bitcoin is likely to catalyze a much-anticipated altseason, where other cryptocurrencies might shine. Analysts believe that Ethereum has reached its price nadir compared to Bitcoin, positioning it for an outperforming trend in the coming months.

Smart investors are seizing opportunities within the Ethereum ecosystem, particularly with assets exhibiting resilience. For instance, the token Optimism ($OP) has surged approximately 12% against Bitcoin over the last 24 hours. Additionally, Ethereum meme coins have gained popularity, with the Pepe coin experiencing a 6% increase. A new meme coin called BTC Bull (BTCBULL) has attracted considerable investor interest, rapidly raising nearly $3 million in its presale.

BTCBULL, while an Ethereum meme coin, leverages Bitcoin’s long-term potential by rewarding holders as Bitcoin reaches specific price milestones. Holders may enjoy advantages such as free Bitcoin airdrops, BTCBULL airdrops, and token burn events. Furthermore, initial investors are already benefiting from substantial staking rewards, currently boasting an annual percentage yield of over 150%. The prospect of earning free Bitcoin has generated significant enthusiasm for this new meme coin, with many investors expressing their belief in its potential to achieve considerable gains.

In conclusion, despite recent bearish market sentiment surrounding Bitcoin, key indicators and expert analyses suggest that the cryptocurrency may soon seek new all-time highs. Analysts point to improving liquidity conditions and historical patterns that indicate a potential price surge. Furthermore, with notable altcoins like Ethereum set to perform strongly, investors are encouraged to explore opportunities within the cryptocurrency market, including emerging projects like BTCBULL.

Original Source: en.cryptonomist.ch

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