The movement of Bitcoin is becoming more complex. Prices are fluctuating, on-chain data gives mixed signals, while macro factors are starting to play a larger role in shaping sentiment.
Overview
Major players are still seen adding BTC exposure.
Upcoming macro agenda has the potential to trigger significant volatility.
Short-term technical signals are weakening, but long-term valuations are starting to look attractive.
Positive Side
Institutional accumulation continues: large entities and exchanges are adding BTC again, reinforced by continued buying signals from Michael Saylor.
Mayer Multiple around 0.6 → BTC is trading well below the 200H MA, a level that historically often appears in capitulation phases.
Adoption continues: more and more merchants are accepting BTC, along with policy pushes such as the Community Bitcoin Reserve discussion in Illinois.
Risks to Watch
Next week is packed with important macro events (FOMC, Fed liquidity injection) → potential for a significant spike in volatility is very high.
Short-term momentum is still weak: negative MACD and RSI6 sharply declining indicate that selling pressure has not fully subsided.
Bearish scenarios are not dead, with correction targets still being discussed in the $50K–$60K range, even extreme at $38K.
Community sentiment is divided. Some are preparing for a continuation of the bear market, while others see this phase as a rare accumulation zone, especially after the emergence of old wallet activity.
➡️ Conclusion: long-term data is starting to support accumulation, but short-term timing remains risky. The market has yet to provide certainty; patience and selectivity remain the best strategy.
Bitcoin is currently entering a phase of rapid ups and downs. After a sharp correction, the price briefly rebounded, but the next direction remains full of question marks. The market appears confused: extreme fear on one side, distribution signals on the other.
Big Picture
Technical momentum is starting to weaken and volatility tends to decrease.
Whale activity and ETF flows indicate potential continued selling pressure.
Market fear is at an extreme level, a condition that often sparks contrarian accumulation narratives.
Positive Side
The Fear & Greed Index fell to a level of 6, the lowest in >3 years → historically often appears close to accumulation phases.
ETF inflows have re-emerged: BlackRock clients purchased $231 million in BTC ETF, halting the outflow trend from two days earlier.
A small short squeeze occurred: >$90 million in short positions for BTC & ETH were liquidated in a short time, giving a temporary price boost.
Risks Still Dominant
MACD has turned bearish, negative histogram → short-term momentum is weakening.
Old whales and large institutions are moving thousands of BTC to exchanges, opening up possibilities for selling pressure.
BTC ETFs are still recording weekly outflows of >$358 million, indicating that institutional demand is not yet stable.
Community sentiment is divided. Some see extreme fear as a long-term golden opportunity, while others believe it is not yet the time to conclude a bottom.
➡️ Conclusion: this condition is suitable for observation and gradual accumulation for long-term thinkers, but still risky for aggressive investors. The market has not provided certainty; discipline remains key.
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The Trader's Hope Reemerges, Bitcoin Rebounds 10% to US$71,000 Bitcoin successfully recovered to the level of US$71,000, strengthening around 10% within 24 hours after previously being pressured down to the area of US$59,000. Nonetheless, on a weekly basis, Bitcoin still recorded a correction of around 15%, indicating that market volatility has not fully subsided.
This recovery is supported by an inflow of Bitcoin Spot ETF valued at approximately US$99 million on Friday (07/02), signaling strong buying interest from institutional investors. However, on the other hand, an anomaly occurred on the South Korean exchange, Bithumb, where Bitcoin was traded more than 10% lower than the global market due to an operational error in fund crediting.
Although prices are starting to recover, Bitcoin's performance still lags behind gold and US tech stocks. Low leverage interest has also dampened momentum, reinforced by the liquidation of bullish futures contracts valued at around US$1.8 billion in the last five days. This situation has raised concerns that some hedge funds or large market makers are under liquidity pressure.
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Bitcoin has managed to rise quite aggressively. From the low area, the price has rebounded >11%, indicating a strong response from short-term buyers. However, behind this bounce, macro conditions and institutional fund flows are still not fully supportive.
Main Highlights
BTC sharply rebounded and triggered short-term bullish technical signals.
Institutional activity is split: there are large purchases on the exchange side, but ETFs are actually recording outflows.
Macro uncertainty still looms, which could trigger further volatility.
Supporting Factors
The rebound from around $63K to $70K occurred quickly, with MACD and RSI confirming upward momentum.
One large exchange bought 3,600 BTC (~$250 million) for security funds, creating real buying pressure.
The long-term narrative remains alive: BTC is still viewed as a hedge asset, with extremely optimistic projections still circulating.
Risks to Watch Out For
Massive long liquidations (> $4.5B) and negative funding rates indicate that the market is not fully healthy.
Spot BTC ETFs recorded nearly $500 million net outflow, signaling that institutions are still reducing exposure.
Bearish projections have not disappeared, with correction targets still being discussed in the range of $38K–$60K.
Market sentiment is split. Some are confident that $60K is the bottom, while others see this rebound as just relief before a deeper drop.
➡️ Conclusion: this bounce is technically valid, but not strong enough to change the larger narrative. This area is more suitable for observation and tight risk management, not euphoria.
MSTR Rises As Bitcoin Recovers from $65K, But Risks Still Lurk Strategy stock (MSTR) has started to show a rebound after being hit hard alongside the recovery of Bitcoin prices from the lowest area. In pre-market trading, MSTR rose about 6.7% to $114.16, following a sharp decline the day before when Bitcoin briefly plummeted to around $65,000 and erased all gains since the US Presidential Election in November 2024.
Bitcoin's recovery to the $75,600 area triggered cautious dip buying, providing temporary relief for crypto-based stocks. However, sentiment towards Strategy remains fragile. Year-on-year, the stock is still down about 70%, worsened by a quarterly net loss report of around $12 billion due to mark-to-market adjustments of Bitcoin holdings.
This situation reinforces one thing: extreme volatility is still the daily fare in the crypto market and its derivatives. It's not about being bullish or bearish, but about the readiness of strategies to face the two directions of the market.
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