Bitcoin's Bullish Sentiment Persists Despite Market Volatility

Bitcoin Price Prediction for Feb 5th: Market Bottom Not Yet Reached, but Bullish Sentiment Persists

Over the past week, the crypto market has experienced heightened volatility, with both altcoins and Bitcoin (BTC) experiencing high price fluctuations. Bitcoin has continued to trade sideways, consolidating between $94k and $100k. This has left key stakeholders wondering if the crypto market has reached the bottom.

Analysts suggest that the market price bottom has not yet been reached, citing a Long/Short Ratio crossover. Historically, market price bottoms occur when Bitcoin's Long/Short ratio crosses the Average Long/Short Ratio of altcoins. At the time of writing, BTC's Long/Short Ratio was at 1.48, while Altcoins were around 2.55. Thus, no crossover has occurred since September 2024, suggesting that investors are still more confident and bullish on altcoins than Bitcoin.

While investors are more inclined to altcoins than Bitcoin, BTC holders and traders remain bullish. The prevailing market conditions highlight that Bitcoin will be rising with frequent corrections, resulting in continued consolidation. This bullish sentiment is further confirmed by a surging total unspent of dormant coins, reaching 18.1 million. Additionally, Bitcoin's Mayer Multiple has dropped to 1.25, signaling bullish momentum and room for more upside movement.

In conclusion, while the bottom has not yet been reached, and neither has the top, the crypto market seems positioned for continued rise with frequent corrections. Bitcoin long-term holders remain optimistic and expect prices to continue rising. If this trend holds, BTC will reclaim $99,500 and attempt a move above $100k again. However, with a drop over the past day, if macroeconomics remains unpredictable, it could drop again to $94k. Consequently, altcoins will continue to trade sideways as buyers reenter the market every time prices drop.

Analysts warn that the time may not be right for new long trades as Bitcoin's price holds below $100,000. Despite Bitcoin's recent jump past $102,000 after dipping to $91,229 on Feb. 3, the Relative Strength Index has been consolidating. The RSI