Bitcoin’s Wild Ride: Will It Soar or Sink? 🚀💰

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TL;DR

  • Bitcoin (BTC) has bounced back from its February low of under $92K, with some analysts whispering sweet nothings about a potential rise to a new peak. Or maybe just a new hill. Who knows?

  • However, recent exchange inflows are like a bad smell in a crowded room, indicating increased selling pressure, while the rising US inflation is like that one friend who just won’t leave the party, potentially delaying any Fed rate cuts and weighing down BTC like a sack of potatoes.

BTC Bulls to Retake Control? Or Just Take a Nap?

Our dear friend Bitcoin had a rather splendid start to 2025, gallivanting up to a new all-time high of nearly $110,000 on January 20, just in time for Donald Trump’s inauguration—because nothing says “celebration” like a cryptocurrency spike. But alas, since then, Bitcoin has been on a downward spiral, briefly plummeting below $92,000 during the crypto market crash on February 3, and now it’s lounging around at about $96,200 (according to the ever-reliable CoinGecko, which is definitely not a wizard in disguise).

Several analysts, who are probably wearing their lucky socks, believe it’s time for the bulls to charge back in and hoist the valuation to fresh peaks. One particularly optimistic X user, CRYPTOWZRD (because who wouldn’t trust a wizard?), claimed that BTC’s daily candle closed “strongly bullish today,” which sounds like something you’d hear at a particularly enthusiastic barbecue.

“I believe the correction is over now, and Bitcoin should be pushing above the $100,000 resistance target. Above that, there will be a psychological value for retail traders, leading them to pour more money into the market,” they suggested, probably while sipping a potion of optimism.

This analyst thinks a breakout of the next major resistance target of $108,000 is “very likely,” which is a phrase that has been known to cause spontaneous celebrations in the crypto community. Or at least a mild cheer.

The Bears Might Stay a Bit More (Like Uninvited Guests)

Now, contrary to the bullish predictions that sound like a pep rally, some on-chain factors are waving red flags like they’re at a particularly chaotic football match, indicating that BTC could continue to underperform in the short term.

According to CryptoQuant, the asset’s exchange netflow has been predominantly positive in the last week, which is a fancy way of saying that people are moving their coins from their cozy wallets to centralized platforms, increasing immediate selling pressure like a game of musical chairs gone wrong.

Meanwhile, the latest US CPI data showed a slight increase in the inflation rate in the world’s largest economy, which is about as welcome as a mosquito at a picnic. The Federal Reserve is considering this when deciding its next move regarding interest rates, and rising inflation might just convince them to postpone a rate cut, which could be bad news for the cryptocurrency market. Because, you know, who doesn’t love a good financial conundrum?

After all, lowering the benchmark makes borrowing money easier, which might just spark interest in riskier assets like Bitcoin (BTC)—or at least that’s what the crystal ball says.

Ali Martinez, who seems to have a knack for market predictions, also weighed in, maintaining that BTC’s most important resistance level is $97,530, while support below $92,110 is as weak as a kitten on a diet. Martinez hinted that falling under that zone may lead to a substantial plunge, as there’s a gap between $90,000 and $70,000 that’s just waiting to be filled—like a hungry stomach at a buffet.

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2025-02-13 14:34