Current Bitcoin Market Performance
Bitcoin (BTC) is showing a recovery trend after experiencing sharp declines. The cryptocurrency continues to trade within the $86,000 to $87,000 range.
K33 Research Analysis
An updated analysis from K33 Research suggests that BTC is psychologically oversold, presenting a long-term buying opportunity.
According to K33 Research analysts, over the past month, BTC has underperformed the Nasdaq for nearly 70% of the current period, and its correlation with US stocks has increased.
Vetle Lunde, Head of Research at K33, noted that this movement reflects a risk-off environment and ongoing selling pressure. This pattern leads to BTC falling sharper and recovering weaker than US stocks.
Lunde also pointed out that the last three significant periods when Bitcoin lagged so far behind the Nasdaq coincided with events specific to cryptocurrencies. These events included the Mt. Gox and German government sell-offs in July 2024, and the massive Grayscale outflows in January 2024.
Long-Term Investment Outlook
K33 Research has previously argued that the cryptocurrency market is fundamentally different from previous cycles due to significant policy changes. They believe this makes it an opportune time to start long-term investing.
However, K33 Research has also issued a warning. They indicated that capital may not enter the market simultaneously. This suggests that a rapid rise is not expected, considering the high open interest (OI) in the futures market and Bitcoin's W-shaped recovery pattern.