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

Clearstream plans to offer Bitcoin and Ether custody and settlement services to its 2,500 institutional clients starting April.

Clearstream, the central securities depository arm of Deutsche Börse Group, will launch cryptocurrency custody and settlement services for institutional clients starting April, Bloomberg reports, citing executive at the company. The Luxembourg-headquartered depository will initially support Bitcoin (BTC) and Ethereum (ETH), with plans to expand into other cryptocurrencies and services like staking, lending, and brokerage.

According to the report, Clearstream’s 2,500 clients will be able to access these services through their accounts with Clearstream Banking SA, while the offering itself will be facilitated by Crypto Finance, a majority-owned subsidiary acting as a sub-custodian.

Commenting on the launch, Jens Hachmeister, head of issuer services and new digital markets at Clearstream said that with the offering, the company is creating a “one-stop shop around custody, brokerage and settlement,” adding that this could extend to stablecoins and tokenized securities in the future.

Crypto Finance CEO Stijn Vander Straeten says there’s been “very high demand” for crypto from international banking clients, pointing out that firms typically spend up to €5 million to develop in-house crypto capabilities.

The move comes as major financial institutions expand their presence in the crypto space, supported by regulations like the E.U.’s Markets in Crypto-Assets, or MiCA framework, which took effect last year.

For instance, the second-largest Spanish financial institution by volume of assets, BBVA, is also set to roll out a new crypto trading service in Spain, allowing customers to buy and manage Bitcoin and Ethereum.

As crypto.news reported, customers in Spain will be able to manage their crypto transactions alongside their regular banking activities, the banks says. BBVA will use its own custody platform for cryptographic keys without relying on third-party providers.

A crypto strategist who accurately called the top of the 2021 Bitcoin bull market believes the worst of the current BTC collapse is now in the rearview mirror.

Pseudonymous analyst Dave the Wave tells his 148,800 followers on the social media platform X that Bitcoin is close to carving the price bottom of this correction.

According to the analyst, Bitcoin’s downside potential from current levels is limited based on several technical indicators.

“Thinking we’ve seen the worst of this BTC multi-month correction:

1] Multi-year diagonal support coming through
2] 0.38 Fibonacci retracement repeat
3] 0.5 Fibonacci retracement and resistance come support
4] Time Fibonacci through to the end of April
5] one-year moving average coming through.”

Traders use the Fibonacci extension tool to pinpoint potential reversal price areas based on the Fibonacci ratio. Looking at the trader’s chart, he seems to suggest that BTC will bottom out at $74,000 where three technical indicators are converging to act as support including the 0.5 Fibonacci level, the high time frame diagonal trendline and the one-year moving average.

At time of writing, Bitcoin is trading for $79,361.

While some prominent crypto strategists believe that the Bitcoin bull market is now over, Dave the Wave predicts that BTC will witness an over 2x gain after plunging to the $74,000 price level.

“BTC darkest before the dawn.”

Based on the trader’s chart, he appears to predict that Bitcoin will soar to a new all-time high of $160,000 before the end of the year.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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