Quick Takeaways
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Market Sentiment: Bitcoin recently dipped towards $107K, causing speculation that $125K might be the peak of the current cycle, but some analysts challenge this view.
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Sideways Trend Analysis: Bitcoin has remained stable for 120 days between $107K-$123K, with no breakdown below $107K, indicating institutional demand absorbing retail sells.
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Bullish vs. Bearish Perspectives: Analyst Mr. Wall Street believes current price behavior signals accumulation, while ‘Doctor Profit’ warns that ongoing liquidity withdrawal by the Fed is bearish for Bitcoin.
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Economic Context: The Fed’s planned end to Quantitative Tightening won’t be until December 2025, implying that until then, Bitcoin traders may face difficult conditions as liquidity continues to tighten.
Analyst Says Bitcoin’s Real Reversal Is Still Far Off
Bitcoin started November on a weak note. The price dipped close to $107,000, raising concerns within the market. Many traders now speculate that $125,000 was the peak of this cycle.
However, analyst Mr. Wall Street disagrees with this widespread belief. He argues that the recent price movements suggest a different story. According to him, if $125,000 really marked the top, major support at $107,000 should have collapsed months ago.
120 Days of Stability
Bitcoin has traded sideways for 120 days. It has stayed within a range of $120,000-$123,000 at the high and $107,000-$110,000 at the low. No significant breakdowns or reversals have occurred. Mr. Wall Street notes that even after retail traders sold about 365,000 BTC during this period, the price still holds steady above $107,000. He views this as evidence that institutional buyers are stepping in to absorb the selling pressure.
He believes that rather than indicating a market top, this behavior shows accumulation. Mr. Wall Street thinks the next move could push Bitcoin back toward $120,000-$123,000. He personally remains optimistic, holding a position with an average entry of $107,750.
Bears Remain Cautious
Not all analysts share this positive outlook. Doctor Profit, another well-known expert, warns against expecting immediate gains. He points out that the end of Quantitative Tightening is scheduled for December 1, 2025. Until then, the Federal Reserve will continue to remove liquidity from the market, which can negatively impact assets like Bitcoin.
Doctor Profit argues that liquidity is crucial for Bitcoin’s success. He clarifies that recent claims about the Fed “printing” new money were misleading. Instead, they involved temporary repo loans. He believes that as liquidity decreases, it creates conditions similar to those preceding past financial crises.
Market Dynamics
The contrasting views reveal the complexities of Bitcoin’s market dynamics. While some see potential for growth, others highlight significant challenges ahead. As the market unfolds, technological developments in the crypto space may also influence Bitcoin’s trajectory.
For now, investors should stay informed and consider different perspectives as they navigate this digital currency landscape.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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