As of January 9th, Bitcoin (BTC) has been experiencing a three-day bearish streak, with its price dropping closer to $92,000. This downturn has further deterred general investor sentiment, and the crypto market is still grappling with uncertainties around Federal Reserve rate cuts.
News-Driven Volatility Haunts Bitcoin Price
The recent decline in Bitcoin’s price can be attributed to several factors, including news-driven volatility and investors’ cautious approach before President-elect Trump’s inauguration. On-chain data highlights this sentiment, as the 30-day moving average of the Taker Buy/Sell ratio indicated sell-side dominance for the first time since March 2024 (when BTC peaked at around $74,000).
Bitcoin Taker Buy/Sell Ratio
As seen in the chart below from CryptoQuant, the taker buy/sell ratio has dropped below 1, implying that short-term investors are selling at a low. However, this change is not necessarily indicative of a shift in market structure.
| Date | Taker Buy/Sell Ratio |
| — | — |
| Jan 9th | 0.95 |
| Jan 8th | 1.02 |
| Jan 7th | 1.08 |
Short-Term Spent-Output Profit Ratio (SOPR)
The short-term SOPR has also dropped under 1, indicating that investors are selling at a low. However, some analysts believe that these changes are part of Bitcoin’s short-term volatility led by market speculations rather than a change in market structure.
Market Speculations vs. Market Structure
Avocado on-chain, an anonymous crypto analyst, pointed out that the current downturn is not necessarily indicative of a shift in market structure. According to Avocado, investors should remain strategic and avoid reacting to short-term noise, focusing instead on the broader bullish trajectory.
"Investors should remain strategic, avoid reacting to short-term noise, and focus on the broader bullish trajectory."
Key Bitcoin Top Signals for the Current Bull Cycle
Mikybull, a crypto trader, provided a list of key Bitcoin top signals for the current bull cycle. Out of a possible 30 market peak indicators, including Puell Multiple, RSI-22 day, Bitcoin dominance, and MVRV ratio, none of the signals have been hit in the current cycle.
| Indicator | Current Value |
| — | — |
| Puell Multiple | 1.5 |
| RSI-22 day | 60 |
| Bitcoin Dominance | 40% |
| MVRV Ratio | 2 |
According to Mikybull, "Every dip is an opportunity in preparation for a massive rally that’s coming."
Dismissing Long-Term Bearish Predicaments
Alex Kruger, a crypto analyst, also dismissed long-term bearish predicaments and said that "people are way too bearish now." The economist explained that while "easy mode" is over going forward, the liquidity injection that will be taking place on behalf of traditional finance in 2025 is yet to be accounted for.
"People are way too bearish now. Easy mode is over going forward."
Conclusion
As the crypto market continues to experience news-driven volatility, investors should remain cautious and avoid reacting to short-term noise. While some analysts believe that the current downturn is indicative of a shift in market structure, others argue that it’s part of Bitcoin’s short-term volatility led by market speculations.
Related Articles
- How Low Can the Bitcoin Price Go?
- Bitcoin Will Hit $1.5M by 2035, Says Analyst Who Called 2024 Bounce
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This article is for general information purposes only and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Table of Contents
- Bitcoin’s Daily Chart on a Three-Day Bearish Streak
- News-Driven Volatility Haunts Bitcoin Price
- Key Bitcoin Top Signals for the Current Bull Cycle
- Dismissing Long-Term Bearish Predicaments
- Conclusion
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