Since January 31, Bitcoin (BTC) has experienced a significant correction, with the leading cryptocurrency plummeting as much as 27.52%.

Currently valued around $79,000, Bitcoin’s price is precariously balanced above a crucial support level dubbed as “the magic line,” which is set at $74,000, pivotal in determining the market’s trajectory—bullish or bearish.

A Historical Buffer Against Bear Markets

In a recent social media post on X (formerly Twitter), market expert Doctor Profit emphasized that “the magic line” placed at $74,000 in his analysis is not just a number but a key indicator of market sentiment. 

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According to the expert, this line has historically acted as a buffer against bear market conditions. For instance, during the 2020 market correction, Bitcoin held above this support level until a bear market was confirmed. Doctor Profit asserts, “A massive correction, even 30-50%, does NOT mean a bear market.” 

This market volatility is exacerbated by fears of a recession, driven in part by President Donald Trump’s aggressive tariff policies targeting countries like China, Canada, and Mexico. 

These actions have ignited concerns over a potential trade war, further dampening investor sentiment and leading to a retreat from riskier assets, including cryptocurrencies.

However, BTC is not alone in this downtrend. Peers such as Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA), have also followed Bitcoin’s lead in this regard, experiencing 10%, 6%,5% and 6% drops respectively in the 24-hour time frame. 

Optimal Bitcoin Entry Point Between $52,000 and $60,000?

In another recent post on social media platform X, Doctor Profit discussed a possible recession scenario, suggesting that the optimal entry point for investors might be between $52,000 and $60,000. 

This forecast implies a troubling potential drop of another 34% from $79,000 towards the worst case scenario for BTC’s price at $52,000 if this occurs, heightening concerns among traders and investors alike.

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Doctor Profit remains vigilant, monitoring not only Bitcoin’s movements but also the stock market’s influence on crypto prices. He has set his sights on a critical short position with a target profit level (TP1) aligning with the magic line. 

“If Bitcoin bounces hard, I’ll re-enter,” the market expert stated. Doctor Profit concluded his analysis saying that “If it shows weakness, I’ll stay in cash and hunt for lower entries between $50,000 and $60,000.”

While finding at least a temporary foothold at the $79,460 mark, the largest digital asset, BTC, is down 14% in the past two weeks, reaching its lowest level since November 2024.

Featured image from DALL-E, chart from TradingView.com

Binance co-founder Changpeng Zhao has suggested that the highly anticipated Altseason isn’t here yet as most altcoins continue bleeding, while some market watchers consider the worst might be over soon.

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CZ Says There’s No Altseason Yet

On Friday, Changpeng Zhao, also known as CZ, responded to an X user asking when the Altseason will happen. The Binance founder pointed out the price tracking and market data website CoinMarketCap (CMC), which recently added an “Altcoin Season Index.”

CZ highlighted that “of the top 100 altcoins,” very few have outperformed Bitcoin (BTC) in the past three months, suggesting that the Altseason won’t happen yet.

As the website states, the CMC Altcoin Season Index page “provides real-time insights into whether the cryptocurrency market is currently in Altcoin Season,” based on the performance of the top 100 altcoins against the flagship crypto over the past 90 days.

Under this metric, an Altseason is in if 75% of the top 100 altcoins outperform BTC during the established period. To CZ, “This is a tough ranking system,” as he considers that 50 would be a good score for Altcoins.

The CMC index page shows a score of 14/100, with only 14 altcoins outperforming BTC since early December. Some of the tokens in this list include Monero (XRM), Hyperliquid (HYPE), Pi (PI), Mantra (OM), Berachain (BERA), and the official Trump memecoin (TRUMP).

Leading cryptocurrencies of 2024, like SUI and Solana (SOL), show 37% to 41% price decreases in the past 90 days. Meanwhile, memecoin sensations like dogwifhat (WIF), PEPE, FLOKI, and BONK have bled between 70% and 80% during this period.

Analyst Michaël van de Poppe also noted that altcoins have had an overall negative performance on higher timeframes despite some recent price rallies. “Massive green day on some Altcoins, they are up 2%! Then, you zoom out, and you zoom out, and you zoom out,” he asserted.

Altcoins Bottom Could Be Near

Altcoin Sherpa stated that altcoins were in “about the same or worse” positions during the Summer 2024 retrace, pointing out that “things were also pretty bleak overall and then we saw some strong bounces in August.” However, he noted that, unlike last year, the market doesn’t have a “Trump Pump coming.”

Recently, some of the top cryptocurrencies saw a significant price increase after US President Donald Trump announced a strategic reserve that would include SOL, XRP, Cardano (ADA), Ethereum (ETH), and BTC.

Nonetheless, after the March 6 executive order establishing a Strategic Bitcoin Reserve and a “Digital Asset Stockpile,” the White House AI and Crypto Czar, David Sacks, clarified that the previously named altcoins were used as references for the most valuable tokens in the market.

Sherpa considers that the market’s bottom is close, but “we still also probably have the chop period to get through” before any substantial recovery.

On the contrary, some industry figures have also commented on altcoins’ overall performance this cycle, suggesting that the Altseason already started but will be different from previous cycles.

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Recently, CryptoQuant’s founder and CEO, Ki Young Ju, stated that the Altseason had begun. He affirmed there will not be a direct Bitcoin-to-altcoins rotation this cycle, as BTC dominance isn’t the key metric that defines it.

To the CEO, trading volume is the metric that defines it this time. Ju also pointed out that this will be a very selective and challenging altseason, with only a few altcoins with strong narratives expected to thrive.

Featured Image from Unsplash.com, Chart from TradingView.com

This week’s market correction has seen Bitcoin (BTC), the largest cryptocurrency by market capitalization, retest some of its key support levels. As the price starts to recover from the recent lows, some analysts consider the weekend might bring some bullish relief for investors.

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Bitcoin Recovers From $78,000 Drop

Bitcoin has experienced significant selling pressure over the last week, fueling doubts about a potential market top. The flagship crypto has dropped 21% from last week’s high of $99,000, dipping below the $80,000 level for the first time since November.

The correction also saw BTC drop nearly 30% from its January all-time high (ATH) and trade below its post-US election price range. A week after the market bleeding started, Bitcoin hit a new three-month low, retesting the $78,000 support on Friday morning.

Various market watchers noted that BTC’s most recent decline reached and partially filled its November 2024 CME Gap between $78,000 and $80,700. Rekt Capital pointed out that Bitcoin is experiencing a “strong rebound against the partially filled CME Gap and is doing so on above-average seller volume.”

The flagship crypto has surged around 7% from today’s lows, hovering between the $83,000 and $84,000 support zone for the past few hours.

To the analyst, the CME Gap support and sell-side volume will be two key indicators to pay attention to over the weekend as constant, uninterrupted BTC sell-side pressure is unsustainable, and seller exhaustion potentially accelerates in the next few days.

Bitcoin is finally starting to experience above-average seller volume. There’s still scope for more seller volume to come in, but the chances of Seller Exhaustion occurring are increasing. And Seller Exhaustion tends to precede price reversals.

Is A Weekend Rebound Coming?

Crypto analyst Jelle highlighted that Bitcoin has done “three drives in deeply oversold territory” this week and is retesting the local lows before today’s drop, which suggests that a “weekend relief seems likely.”

The analyst stated that reclaiming the $84,500 support is key for BTC’s recovery as “the past two retests ended up resulting in new lows.”

Nonetheless, he noted that today’s rebound seems different due to BTC “touching the 200-ema cluster” for the first time this week and breaking above it. To Jelle, this could signal an “interesting weekend,” with the new CME Gap at $93,000 open.

Rekt Capital pointed out that Bitcoin “has filled every CME Gap that has formed since mid-March 2024” and that only the newly formed CME Gap between $92,800 and $94,000 remains open after this retrace. If BTC continues this pattern, the price could see a rebound to fill the new gap soon.

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The analyst has outlined two potential scenarios for BTC’s current “downside deviation.” According to the post, Bitcoin’s price could revisit $93,500 by the end of the week if the deviation “is to end up as a downside wick.”

Meanwhile, if the deviation is “to end up as the Post-Halving deviation featuring Weekly Candle Closes below the Re-Accumulation range,” BTC’s price could revisit the $93,500 level in the next two to three weeks as “part of a post-breakdown relief rally.”

As of this writing, Bitcoin trades at $85,120, a 0.5% increase in the daily timeframe.

Featured Image from Unsplash.com, Chart from TradingView.com