Is It Finally Time to Buy Bitcoin? Analysis Firm Explains!

Bitcoin (BTC) is showing a recovery trend after the sharp declines it experienced and continues to move between $86,000 and $87,000.

While we are wondering whether the recovery will continue, an updated analysis has arrived from K33 Research.

Accordingly, K33 Research analysts said that BTC is psychologically oversold, presenting a long-term buying opportunity.

K33 Research analysis noted that over the past month, BTC has underperformed the Nasdaq for nearly 70% of the current period, and its correlation with US stocks has increased.

According to Vetle Lunde, Head of Research at K33, this move reflects a risk-off environment, ongoing selling pressure, and is leading to a pattern where BTC falls sharper and recovers weaker than US stocks.

Lunde also noted that the last three significant periods when Bitcoin lagged so far behind the Nasdaq coincided with events specific to cryptocurrencies: “The Mt. Gox and German government sell-offs in July 2024, and the massive Grayscale outflows in January 2024.”

K33 Research recently argued that the cryptocurrency market is fundamentally different from previous cycles due to significant policy changes, making it an opportune time to start long-term investing.

However, K33 Research warned that capital may not enter the market at the same time, indicating that high open interest (OI) in the futures market and Bitcoin's W-shaped recovery pattern are not expected, meaning a rapid rise is not expected.