As Bitcoin’s price holds below $100,000, experts warn that the time may not be right for new long trades.
Bitcoin (BTC) is still above $100,000, but signs of a slowdown are showing, and analysts warn it might be too early for long positions. Despite Bitcoin’s recent jump past $102,000 after dipping to $91,229 on Feb. 3, the Relative Strength Index has been consolidating.
“Bitcoin has historically presented strong buying opportunities only when the RSI dropped to around 40%,” analysts at blockchain firm Matrixport wrote in a Feb. 5 research note. As of press time, the RSI sits at 48%. The mark still too high to trigger the usual market patterns for optimal entry points, the analysts warn. Due to this uncertainty, Matrixport suggests investors should stay patient and wait for a better buying opportunity.
The surge on Feb. 4 came after a big drop due to concerns over President Donald Trump‘s proposed tariff hikes, which sparked fears of a trade war. However, after Trump moved to temporarily halt the tariffs, Bitcoin’s price rebounded.
The recovery was also fueled by a huge liquidation of speculative bets. Feb. 3’s crash was the biggest ever, even worse than Terra and FTX, crypto.news reported. On Feb. 3, the crypto market faced a severe downfall, with over $2.3 billion in leveraged crypto positions being liquidated within 24 hours. One of the alternative estimations points out $8 to $10 billion in crypto liquidation.
With market conditions still uncertain, the analysts suggest that a “more strategic approach would be to exercise patience and wait for an optimal entry point.”
