By Key Points:
- Bitcoin Drops Below $85K
- Bitcoin’s open interest fell 14.42%, hinting at a buy opportunity.
- Crypto Fear and Greed Index at 15 signals a possible market bottom.
- BTC’s RSI is nearing oversold territory, suggesting a rebound.
- Analysts predict Bitcoin could rally toward $92,247 if momentum returns.
Bitcoin (BTC) has once again fallen below the $85,000 mark, currently trading at $84,255. This sharp pullback comes after a strong weekend rally, leaving investors on edge. However, according to a new CryptoQuant analysis, this correction may actually set the stage for a bullish rebound.
📢 Bitcoin: Price Discovery Zone Between $70K and $90K!
In the coming months, Bitcoin is expected to enter price discovery between $70K and $90K, a zone with a $20K gap where key derivatives metrics—such as open interest, trade count, and buying volume—show a lack of historical… pic.twitter.com/azgnxdvWZS
— Alphractal (@Alphractal) March 4, 2025
Analysts point to three key indicators: declining open interest, extreme fear in the market, and an oversold RSI. Historically, these conditions have signaled a price bottom, often leading to a strong recovery.
Smart Money is Accumulating Bitcoin
One of the strongest signals of a potential rebound is the decline in Bitcoin’s open interest. Open interest measures the total number of unsettled futures and options contracts. A 14.42% drop in open interest suggests reduced leverage in the market, which can indicate that speculative traders are closing positions.
All Bitcoin open interest from the Trump victory rally has been erased. Solid place to find a base here. $BTC pic.twitter.com/jqH9aUC0oK
— sneaky (@SneakyAlgo) March 4, 2025
According to a CryptoQuant analyst known as “Banker,” such a sharp reduction often signals a buying opportunity. A decrease in speculative activity can reset the market, allowing long-term investors to accumulate Bitcoin at lower prices before the next leg up.
Additionally, the Crypto Fear and Greed Index has dropped to 15, placing it in the “extreme fear” zone. Historically, such low levels indicate that the market is oversold, often leading to a price recovery. When fear dominates, savvy investors take the opportunity to buy assets at discounted prices.
Can Bitcoin Rebound Toward $92,000?
Another bullish signal comes from Bitcoin’s Relative Strength Index (RSI), which is approaching oversold levels at 36.88. This momentum indicator suggests that selling pressure may soon subside, paving the way for a bounce. If history repeats itself, BTC could rally toward the $92,247 resistance level in the coming days.
However, if bearish sentiment persists, Bitcoin could drop further, possibly testing support at $80,580. Traders are closely watching upcoming macro events, including the March 7 Crypto Summit at the White House, which could impact market sentiment.
For now, analysts suggest that Bitcoin’s dip may present a strategic entry point for long-term investors, setting the stage for the next major rally.
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