Nicholas Merten from DataDash is back to answer the big question: What the heck is happening with Bitcoin? For nearly three months, Bitcoin has been stuck in a range. Is it gearing up for another rally, or are we about to see a serious correction? According to DataDash, we need to look at ETF inflows, MicroStrategy’s moves, and key support levels to figure out what happens next.
Bitcoin: Normal Pullback or Warning Sign?
Bitcoin’s sideways movement isn’t unusual, and DataDash says this kind of consolidation is completely normal and healthy after a major rally. "People assume Bitcoin should always go up, but after big runs like we saw between September and December, the market needs time to breathe. These consolidation periods allow for the next rally to build." At the same time, the market is testing a major resistance-turned-support level from 2021. If it holds, this could be the foundation for Bitcoin’s next breakout. If it doesn’t, things could get ugly.What’s Holding Bitcoin Back?
Key Highlights:
- ETF Inflows Slowing Down: In late 2024, Bitcoin ETFs were driving massive demand, adding up to 120,000 Bitcoin in just two months. But February has been much weaker, with only 1,800 Bitcoin added so far.
- MicroStrategy’s Buying Power is Fading: "They were a major force behind Bitcoin’s rally, sometimes buying more than ETFs. But their ability to raise money is slowing down, and that could impact demand."
- Supply vs. Demand is Everything: "At the end of the day, price depends on whether there are more buyers than sellers. Right now, that balance is shifting."
Key Levels to Watch
Key Highlights:
- The 21-Day Moving Average: Bitcoin needs to reclaim this level soon to stay strong.
- $80,000–$90,000: If Bitcoin breaks lower, this is the next major support zone.
- $120,000: If Bitcoin moves higher, this is where DataDash sees the next major resistance and a likely profit-taking zone.
Altcoins: Some Strength, But Still Struggling
Altcoins have been in a brutal downtrend, and while some are showing early signs of life, most still haven’t proven themselves. "A lot of altcoins have dropped 35%–50% in the past few months. Some are finally stabilizing, but we need to see real strength before getting too bullish."What Looks Interesting?
Key Highlights:
Even with some promising setups, DataDash warns:
"If you’re going to trade altcoins, focus on the ones that are showing real strength. A lot of them are still just chopping around."
- Solana: "Starting to coil up against key moving averages, which is a good sign."
- Fetch.ai (FET): "Down over 85% from its highs—exactly the kind of deep discount I look for in strong projects."
- Render (RNDR): "AI plays are still relevant, and Render is showing signs of reclaiming key levels."
Meme Coins: No Clear Reversal Yet
Even large-cap meme coins are struggling:Key Highlights:
"Meme coins will always have their moments, but right now, they don’t look strong."
- Dogecoin and Pepe: Still facing resistance at key moving averages.
- No strong uptrend yet: Despite heavy corrections, these coins aren’t showing clear signs of recovery.
Final Thoughts: Time to Buy or Time to Wait?
DataDash isn’t calling for a crash, but he’s cautious. "Bitcoin might hold here, but if it loses key levels, a deeper correction is totally possible. We could easily see a 25% pullback, and that wouldn’t be anything out of the ordinary."What He’s Watching Next:
- ETF inflows: If buying pressure picks up again, Bitcoin’s rally could resume.
- MicroStrategy’s stock premium: If it improves, they might start buying more Bitcoin again.
- Altcoins reclaiming key levels: If they start outpacing Bitcoin, that could signal a new trend.
