Following the recent recovery in the cryptocurrency market, analysts are painting a cautious but constructive picture for the first quarter of the year.
According to market experts, while prices are expected to fluctuate within a wide range in the short term, a more solid support base has emerged for downward movements.
SynFutures COO Wenny Cai, while evaluating the recent recovery in Bitcoin, noted a significant increase in average Bitcoin inflows, particularly on Binance. According to Cai, this indicates a renewed activity among large investors. He stated that this is usually seen as an early signal of a new speculative cycle, rather than short-term noise from individual investors. However, he argued that the current price movements resemble a readjustment process following weeks of weak positioning, rather than a strong accumulation of positions.
Cai stated that investors are testing the upside potential but haven’t yet built aggressive positions, suggesting that Bitcoin could experience volatile but sideways movement during the first quarter. He added that the direction during this period will depend on ETF inflows and institutional investor strategies.
On the other hand, while it is stated that the developments in Venezuela do not have a direct impact on cryptocurrency prices, it is noted that they have increased the perception of geopolitical risk. Derek Lim, research director at crypto market maker Caladan, warned that such developments increase global uncertainty and can create chain reactions that may cause panic in the markets through indirect effects.
Lim also said that despite the cautious atmosphere, the return of large investors to the market after a period of accumulation signals a significant shift in market dynamics. Noting that long-term Bitcoin investors have become net buyers for the first time in months, Lim stated that this indicates that prices are forming a stronger support base, even within the current trading ranges.
*This is not investment advice.
