A closely followed economist thinks that Bitcoin (BTC) may be forming a market bottom after a deep correction that tapped the $78,000 level.
Alex Krüger tells his 206,200 followers on the social media platform X that if Bitcoin’s bottom is in, the flagship crypto asset will soon march back to $92,000.
He also says a bear trap would be confirmed if Bitcoin reclaims $92,000 as support.
A “bear trap” is when a price goes low enough to convince bears to sell or go short before quickly reversing in the opposite direction of their positions.
“BTC did lose its prior range by a wide margin. If that was indeed a bottom would expect it to trade up to $89,000-$92,000 and then fall back to the $80,000s again to fill a new range. Above $92,000 you have a bear trap. Good year for active traders still ahead.”
The economist also says there were likely multiple factors contributing to Bitcoin’s severe correction, but he believes the flagship crypto asset remains in a bull market cycle.
“Noticing some confusion behind the drivers of this crypto crash. There have been multiple variables at play. Best not to try to find a single culprit.
On the crypto side:
- [MicroStrategy founder Michael] Saylor blowing his entire $2 billion load in one sitting at $97,500.
- SOL implosion driven by unlocks and the Libra fraud making market participants question the casino investment thesis, [leading to] contagion.
- BTC multi-month range breakdown.
On the macro side:
- Tariffs much more aggressive than expected.
- Higher inflation expectations print.
- Growth scare, partly driven by Trump lowering public spending, tariffs, and a few economic data points (fear is inconsistent with inflation expectations).
Ironically, the US economy is in very good shape. Growing, around full employment, with inflation trending lower. That said, the market may just have bottomed overnight.
Even if not the case, I find it very hard to see this as the beginning of a prolonged bear market.”
Bitcoin is trading for $85,312 at time of writing, up over 5% in the last 24 hours.
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