Bitcoin, Is This the Real Bottom?... Analyst Says “The Opportunity Comes When Others Flee”

▲ Bitcoin (BTC)

Bitcoin (BTC) has been gripped by extreme fear amid geopolitical tensions and large-scale sell-offs by whales. However, the historically low fear index is paradoxically interpreted as a strong bottom signal that could offer long-term investors an opportunity for wealth.

On Feb. 23 (local time), cryptocurrency analyst Lark Davis said in a video posted on his YouTube channel that Bitcoin’s recent sharp drop to around $64,000 was a typical fake-out targeting low-liquidity Sunday trading. Davis analyzed that the deployment of U.S. military forces to the Middle East has reached its largest scale since the 2003 Iraq invasion, adding uncertainty to global financial markets. While it remains unclear whether Middle East tensions will escalate into actual war or serve as leverage for negotiations, markets are reacting with extreme sensitivity to such macroeconomic noise.

Artificial Intelligence (AI) technology is still in its early stages, with 84% of the global population yet to experience it, making it a massive megatrend likely to continue for more than a decade. Davis explained that the current situation, in which only 0.3% of users pay for AI services, presents substantial profit opportunities for investors who understand the technology’s fundamentals. The growth of the AI industry has moved beyond a passing trend and entered a critical phase of building a new economic ecosystem.

The Bitcoin Fear & Greed Index has fallen to a historic low of 5, indicating severe market depression, but historical precedents show that extreme pessimism has consistently marked the starting point of strong rebounds. Ethereum (ETH) remains in a bearish position after breaking down from a symmetrical triangle pattern, while Solana (SOL) could complete a double-bottom pattern and rebound if it breaks above the $88 level. Davis noted that Ethereum founder Vitalik Buterin’s periodic token sales have been a persistent negative factor weighing on market sentiment.

A rebound in the U.S. ISM Manufacturing PMI signals a potential economic expansion in the United States, which could act as a powerful catalyst for gains in the digital asset market. Historically, whenever the index surpassed the 50 threshold, crypto asset prices surged significantly, demonstrating how vitality in the real economy can flow into digital asset markets. Optimistic outlooks are gaining traction that after the final week of February, March could usher in renewed capital inflows and a reversal in market sentiment.

Although a further 50% short-term decline in Bitcoin cannot be completely ruled out, the expected returns at current levels significantly outweigh the potential risks. History suggests that accumulating positions when others give up and declare the end of Bitcoin often leads to substantial future rewards. Investors should avoid being swayed by market noise and short-term volatility, instead closely monitoring technical indicators and fundamental macroeconomic trends while preparing for the next bull market.

Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.