A sudden Bitcoin crash may precede a major bullish rally
On Saturday, Bitcoin experienced another sharp crash that brought it to a seven-month low just above $75,000. In less than two weeks, the losses amounted to approximately $20,000.
January ended with a 10% decline for BTC, marking the fourth consecutive month to close in negative territory. All of this largely aligns with the dynamics of a bear market.
However, not everyone is discouraged by this situation — analyst Merlijn The Trader believes that there are positive aspects to the multi-billion-dollar crash that occurred on Saturday.
According to the analyst, BTC differs from other asset classes due to its high volatility. He recalled that every major Bitcoin rally began in a similar way: a sharp crash occurred, followed by a loss of confidence and quiet accumulation.
As expected, the crashing Bitcoin dragged the entire crypto market down with it, and the Fear and Greed Index switched to “extreme fear.” Against this backdrop, large players began actively accumulating Bitcoin.
Merlijn The Trader noted that BTC is now clearly following the scenario he described. He identified the $78,000 level as particularly significant, as it could determine the next major short-term move — either a healthy correction or a deeper sell-off.
See also: "XRP cryptocurrency fell by 11% in bearish trading with a pullback"
Українська
Русский
English

