Despite the bullish predictions for Bitcoin in 2025, it has yet to meet expectations. The price has started to decline following a new all-time high six days ago.
In a post on X, analyst Ali reported a large sell-off in Bitcoin ETFs, revealing that nearly 8,000 BTC were sold on Monday, amounting to approximately $800 million. This movement in ETFs could signal a shift in investor sentiment, potentially contributing to a bearish outlook for Bitcoin in the short term.
Bitcoin’s Potential Price Reversal
The hourly chart of Bitcoin, as analyzed by ali_charts, displays a sell signal from the TD Sequential indicator. Developed by Tom DeMark, this tool is renowned for predicting when a trend might exhaust itself, suggesting that Bitcoin’s current upward trajectory might soon reverse.
Following a recent peak, Bitcoin’s price has shown signs of decline, with the indicator pointing towards a potential drop to $99,000, a level previously seen as a low point. This indicates that Bitcoin might revisit these levels before any upward movement could resume.
Optimistic Outlook for Bitcoin
In contrast to the bearish signals from technical analysis, Ash Crypto has taken to X to encourage investors with a bullish perspective. In his recent post, he advises against panic selling, suggesting that the current market dip is merely the last shakeout before significant gains in the crypto market.
Ash Crypto emphasizes the importance of holding through this period, viewing it as the final test of investor resolve before a major bull run.
The message is clear: patience could lead to life-changing profits. This outlook serves as a counter-narrative to the immediate bearish signals, focusing on the potential for substantial growth in the crypto space over the medium term.
Despite the bearish signal initially suggested by Ali, he remains optimistic that a rebound might follow, buoyed by expectations of a dovish outlook from the Federal Reserve. Such a policy stance often leads to lower interest rates, which can be positive for speculative assets like cryptocurrencies.
Looking ahead, the chart suggests an eventual upward trend post-dip, with a projected rise indicated by an ascending line on the chart, hinting at optimism for Bitcoin’s rebound.
The anticipation of a dovish Fed policy could provide a silver lining, potentially supporting a recovery in Bitcoin’s price by fostering a more risk-friendly investment environment.
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In summary, the analysis from Ali points towards a short-term bearish scenario for Bitcoin, with a potential retest of the $99,000 support level due to the TD Sequential sell signal. However, Ash Crypto’s analysis offers a beacon of hope for long-term investors. His advice to hold through the shakeout reflects confidence in the market’s resilience and potential for significant appreciation, suggesting that the current downturn could be the precursor to a historic rally in cryptocurrencies.
