A slight recovery in Bitcoin (BTC) and cryptocurrency has shown signs of strength despite fear that after the recent fall, the market will begin a bearish era.
“Bitcoin faces a technical inflection point,” according to David Zanoni, an investor focused on long-term strategies.
“Bitcoin shows a major bullish technical difference, which generally leads to a negative to positive change,” experts say. This is highlighted in a new report released on Monday, March 17th, 2025.
As the relative strength index has increased, the divergence is apparent as the price of Bitcoin drops (RSI), an important indicator of movement impulse. This increase indicates that the assets were recovered from the oversold conditions experienced at the end of February.
RSI climbing is given after double beds have been formed, i.e. after proof of support twice. This usually follows something valuable, Zanoni emphasized.
Additionally, it highlights the MACD indicator. It measures the ratio of the two main price averages to identify long-term movements. This increased from red to green, indicating a change in the positive return trend in Bitcoin prices,” he explained.
In this situation, we consider investors BTC prices should close in March above 70,000 US$. This was a major level of support, serving as most resistance in 2024 and as the peak of the previous bullish cycle that ended in 2021.
For specialists, closing down under US$70,000 each month of Bitcoin could mean a much shorter cycle compared to previous cycles. “That situation suggests that the peak of this cycle is at US$109,000, the level we reached in January,” he said.
However, he said that if this cycle matches the last two that lasted about 1,064 days, then Bitcoin prices will reach maximum points around October 2025.
If that’s heading towards it, this cycle has an objective price of USD 150,000 at the time. Arrivals in such quantities mark a 2,618 Fibonacci level, an indicator of technical analysis of typical market movements.
Furthermore, it identifies that a recent 30% decline in Bitcoin is typical of bull markets, recovering from the entire territory that shows potential rebounds. The final decline in this magnitude came just before August 7 months before 2024.
According to its historical action, Bitcoin can also be cited in a certain range for about six months before moving to the next higher section. So Zanoni mentioned it That price may not return to historic maximum (ATH) until late 2025.
Before Bitcoin rebounds from oversales levels, investors point out that in the coming weeks and months, they can maintain their rebound to get closer to being above.
The basic aspects help to increase BTC
In addition to technical data, Zanoni explained that there are fundamental positive aspects that can help increase price rebounds. First, we will distinguish between fixed supply of Bitcoin (on completion, there are only 21 million currencies). In other words, prices will rise due to increased demand.
Furthermore, he has been told that President Donald Trump has issued an executive order to create a strategic Bitcoin reserve in the United States. It could stimulate demand from other governments, businesses and consumers.
The US Bitcoin Strategic Reserve plan to retain the currency of forfeiture at least initially, and therefore will not supply its own demand. However, he explained that the initiative could lead to more businesses and consumers as well as other governments.
Companies such as Strategy (MSTR), formerly known as MicroStrategy, Galaxy Digital Holdings (Glyy) and Tesla (TSLA), have over $1 billion in BTC. “There’s a possibility that other large companies will follow their example and buy Bitcoin as a long-term value reserve,” he says.
“Bitcoin has been the best class of assets since its inception. Therefore, other companies can see the value of maintaining Bitcoin despite its short-term volatility.”
David Zanoni, Inversionista.
In addition to this, for experts, a US debt roof halt could be another positive catalyst for Bitcoin demand. This is to inject new liquidity into the financial markets.
“Sudden liquidity usually benefits behavior and cryptocurrency in the form of higher prices,” he explains. at the moment, Bitcoin is under the M2 line,The measure of money in circulation tends to stay above, as shown in the following graph.
Therefore, “If new liquidity increases global money supply, Bitcoin prices are likely to continue to rebound,” the investors said.
Anyway, he made the exception that the rates Trump was charged on imports could lead to a recession. JP Morgan Bank believes this is a 45% chance of happening, as reported by Crypto.
Bitcoin prices usually follow the S&P 500 down during a major recession, as happened during the Covid-19 crisis. So he revealed it It’s important to prepare for the risk that could have ended the bull cycle, but for now he doesn’t consider the possibility..
(tagstotranslate) Analysis and research
