<\/p>\n
Bitcoin may be carving out a short-term bottom after weeks of heavy selling, with one market analyst arguing that conditions are in place for a relief rally toward the $100,000\u2013$110,000 range.<\/p>\n
In a recent video, trader Mister Crypto said<\/a> Bitcoin (BTC<\/a>)\u2019s short-term structure shows signs of stabilization following what he described as \u201ccapitulation\u201d across the market. He claimed that indicators tied to trader behavior suggest that large players have begun opening new long positions despite the sentiment plunging into extreme fear territory, a mix that has historically preceded bounces during downturns.<\/p>\n One of the main technical signals cited is the Bitcoin Relative Strength Index (RSI)<\/a> on the weekly chart, which is approaching the 30 level. \u201cWe have bottomed out for Bitcoin right here. We have been reaching the 30 level. Boom,\u201d he said. <\/p>\n The analyst noted that, in past cycles, this zone has coincided closely with market bottoms. While he cautioned that this does not guarantee the start of a new bull run, he said the current setup often signals at least a temporary reversal.<\/p>\n Related: <\/strong><\/em>Why China\u2019s Bitcoin mining activity is surging again after a 4-year crackdown<\/strong><\/em><\/a><\/p>\n Another factor adding weight to the rebound scenario is Bitcoin\u2019s distance from the 50-week moving average, currently near $102,000. According to the analysis, Bitcoin has repeatedly retraced toward this level after dipping below it in previous market cycles. The expectation now is a bounce that could lift prices back into six figures before any deeper trend emerges.<\/p>\n Macro conditions are also feeding optimism in the near term. The analyst pointed to expectations that quantitative tightening could soon end, combined with speculation around another interest rate cut at an upcoming policy meeting. Both developments tend to favor risk assets such as Bitcoin by easing financial conditions.<\/p>\n However, the longer-term outlook remains cautious. The analyst claimed that the broader market is in bear territory. He warned that any bounce could be followed by renewed weakness later on, as broader conditions have yet to show a decisive shift back into sustained growth.<\/p>\n Related: <\/strong><\/em>Crypto sentiment moves up from \u2018extreme fear\u2019 after 18-day stretch<\/strong><\/em><\/a><\/p>\n After spending 18 days in \u201cExtreme Fear,\u201d the Crypto Fear & Greed Index finally lifted to a \u201cFear\u201d level<\/a> of 28.<\/p>\n <\/p>\n Meanwhile, Bitwise Europe research head Andr\u00e9 Dragosch has said that Bitcoin could have major upside<\/a> ahead, as its current price doesn\u2019t reflect improving macro expectations. He said Bitcoin now offers an \u201casymmetric\u201d risk-reward similar to the COVID crash of March 2020, when prices plunged before rebounding strongly, arguing the market is already pricing in an extremely bleak global outlook. <\/p>\n$102,000 level in focus<\/h2>\n
Crypto sentiment lifts from \u2018extreme fear\u2019 <\/h2>\n