Despite the drop, a CryptoQuant analyst known as Banker believes this pullback could signal a bullish rebound. The analyst pointed to three key indicators suggesting Bitcoin might recover soon.
One of the leading indicators is a decline in Bitcoin’s open interest. Figures show open interest decreased by 14.42% on March 1. This is evidence of fewer traders with futures or options contracts, which is perhaps a sign of a reducing market leverage. Historically, these declines provide the buyers with the chance to buy at lower prices.
The other pointer is the Crypto Fear and Greed Index that reads 15 currently, meaning investors are heavily fearful. The extremely high level of fear tends to signify that the market is over-sold and that investors have a chance to buy.
Bitcoin’s daily Relative Strength Index (RSI) also supports the bullish case. The RSI is at 36.88, close to oversold conditions. If things go on this way, Bitcoin can bounce to around $92,247. But if the downtrend resumes, the price can drop to $80,580.
Future events such as the March 7 Crypto Summit at the White House may also impact the price of Bitcoin. The summit, organized by President Trump and David Sacks, will help determine future crypto regulations, which is a more positive direction for digital assets.
