FameEX Hot Topics | Is the Bitcoin Bull Run Over? Analyst Says Metrics Don't Indicate a 'Market Peak' Yet

Bitcoin's recent price dip near $92,000 is viewed as a short-term setback, with analysts urging traders to focus on the broader bullish outlook rather than market fluctuations. On January 9, the leading cryptocurrency faced a three-day bearish streak, further fueled by uncertainty surrounding the Federal Reserve's interest rate decisions and cautious investor behavior ahead of President-elect Trump’s inauguration.

The downturn coincided with the U.S. Department of Justice's (DOJ) approval to sell 69,000 BTC, worth approximately $6.5 billion, which contributed to market jitters. Additionally, Bitcoin exchange-traded funds (ETFs) saw their second-largest net outflow at $569.1 million, prompting many to question whether the bull market had come to an end. These developments led to increased concerns among investors, especially regarding Bitcoin's short-term future.

On-chain data analysis supports the notion that Bitcoin’s recent slump is driven more by market speculation and uncertainties than by any structural market shift. The Taker Buy/Sell ratio's 30-day moving average showed sell-side dominance for the first time since March 2024, when Bitcoin peaked at around $74,000. This sell-off sentiment has created a temporary dip in the market but does not signal a fundamental change in Bitcoin’s long-term trajectory.

Additionally, Bitcoin’s short-term spent-output profit ratio (SOPR) dipped below 1, suggesting that short-term investors are selling at a loss. Despite these indicators, anonymous on-chain analyst Avocado reassured that the volatility is a natural part of the market's speculative cycles, urging investors to stay focused on Bitcoin's overarching bullish trend.

Crypto trader Mikybull echoed these sentiments, pointing out that key market peak indicators like the Puell Multiple, RSI-22 day, and Bitcoin dominance have not yet triggered. With no major sell signals, Mikybull emphasized that each dip presents an opportunity to prepare for the massive rally ahead, encouraging a long-term strategic approach.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.