Decentral Block Post

Bitcoin (BTC) price is trying to recover over the weekend but the current bounce lacks conviction. This suggests that dip buyers are nervous to load up before the release of January’s consumer price index data on Feb. 14 as that could boost short-term volatility. 

Although the near term is uncertain, analysts at Delphi Digital expect the United States Federal Reserve to pivot to an accommodative policy later in the year and that could be favorable for risk assets.

Another bullish projection came from Pantera Capital CEO Dan Morehead who said that Bitcoin’s “seventh bull cycle” may have begun. Morehead highlighted that the decline from November 2021 to November 2022 lasted 376 days and that BTC price witnessed a 77% drawdown, in line with the median downdraft of 307 days and a median drawdown of 73% seen during earlier bear markets.

The analysts seem to be turning positive on Bitcoin for the long term but the near term remains uncertain. 

Let’s study the charts of Bitcoin and select altcoins to spot the critical levels to watch out for.

For the first time since the 7th century, the paper-money economy found its true competition in the internet era. With Bitcoin’s (BTC) debut in 2010, the fiat ecosystem was not only challenged with proving its worth in day-to-day transactions but also safekeeping the investment ecosystem it helped build.

Over the years, the crypto ecosystem attracted people from all walks of life — serving their unique financial needs while filling the gaps left wide open by the fiat ecosystem. While most of the world watched from the sidelines, trying to decipher the true potential of cryptocurrencies, the first batch of Bitcoin millionaires swayed investors’ attention toward the budding ecosystem.

The freedom to stick to what makes the most sense financially sprouted various classes of investors, each distinguished by their intent behind crypto investments. Based on the overall approach taken by investors, there are four main categories of mindsets of crypto bag holders — Maximalists, hodlers, fomoers and traders.

Maximalists

Right from the day Bitcoin showcased its cross-border supremacy after being used as a currency on the dark web, numerous investors witnessed a true peer-to-peer monetary system for the first time. What followed was a pledge to stick with Bitcoin and see it overpower the centralized entities, i.e., bringing power back into the hands of the people.

This total support for Bitcoin and the belief that BTC is the only true replacement for the fiat economy gave birth to the term Bitcoin maximalism. Bitcoin maximalists have, time and again, advised the community members to hodl their assets during the bear market. Instead, they often recommend buying the dip — a process that involves investing in crypto during the market’s poor performance. And over the last decade, the recommendation checks out.

Bitcoin (BTC) edged closer to $22,000 over the weekend as traders and analysts urged caution on overly bearish sentiment.

Analyst dismisses “hysterical” crypto sentiment

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD seeing small spurts higher into Feb. 12.

After hitting three-week lows the week prior, Bitcoin was a target for opportunistic whales, on-chain analytics resource Material Indicators explained.

Uploading a chart from the BTC/USD order book on Binance, Material Indicators captured resistance shifting higher, with the potential uptick in spot price offering a more advantageous selling level for large-volume players.

“FireCharts shows Crypto Weekend whales seem interested in trying to exploit the upside illiquidity in the Bitcoin order book to sell higher. Personally, I’m fine with that,” part of the accompanying comments read.