Three Reasons Bitcoin Might Reach New All-Time High by March

Cryptonews BITCOIN, BLACKROCK, BTC, CRYPT, CRYPTOCURRENCY, KI YOUNG JU, MARKET ANALYSIS, MARKET TRENDS Omar El-Sharif March 20, 2025

Three Reasons Bitcoin Might Reach New All-Time High by March

Bitcoin has fallen over 20% from its peak this year, prompting some analysts to predict further declines. However, factors such as worsening market sentiment, rising Bitcoin ETF inflows, and bullish technical formations suggest it could rebound to a new all-time high in March.

The current Bitcoin price is facing challenges as it has fallen over 20% from its peak this year, leading analysts to adjust their forecasts with some predicting further declines. However, there are compelling reasons to believe that Bitcoin could recover and potentially reach a new all-time high by March.

Firstly, market sentiment, as reflected by the Crypto Fear and Greed Index, has shifted toward fear, currently sitting at 25. This decline in sentiment has caused many investors to adopt a more cautious approach, resulting in a drop in active Bitcoin addresses. Despite some analysts expressing bearish outlooks, it is noteworthy that Bitcoin frequently moves contra to prevailing market sentiments. For instance, the recent price drop occurred after a period of increased greed. Additionally, the Mean Dollar Invested Age (MDIA) indicator suggests that long-term investors are holding onto their positions rather than selling.

Secondly, the demand for spot Bitcoin ETFs is increasing, with weekly inflows exceeding $500 million despite the prevailing bear market. Reports indicate that total assets in Bitcoin ETFs have surpassed $91 billion, with Blackrock’s IBIT fund alone holding over $46.8 billion. This influx signals growing optimism among U.S. investors regarding Bitcoin, bolstered by a rising Coinbase Bitcoin Premium Index.

Lastly, strong technical indicators bolster the case for a potential price increase. Analysis of the weekly chart reveals a cup-and-handle pattern forming over the past year, where the handle section was completed last November. Given the cup’s depth of 77%, projections suggest Bitcoin could target approximately $122,420, reflecting a possible 45% increase from current levels. A temporary drop to retest the handle’s upper edge could reinforce this bullish outlook through a break-and-retest pattern.

In summary, despite Bitcoin’s current downturn, there are several key indicators that suggest a potential recovery leading to a new all-time high in March. Market sentiment often reverses direction contrary to expectations, the demand for Bitcoin ETFs is rising, and the formation of bullish technical patterns reinforces the argument for a rebound. Investors should stay vigilant as these factors may significantly influence Bitcoin’s trajectory in the upcoming months.

Original Source: www.banklesstimes.com