Bitcoin Gains Momentum Following Price Drop

Bitcoin is once again being viewed as a strong investment after surging past $102,000 amid a downturn in US stocks led by DeepSeek.

On Jan. 28, Andre Dragosch, European head of research at asset management firm Bitwise, highlighted Bitcoin’s momentum in a post on X, calling its price action “extremely bullish.”

Bitcoin has been outperforming stock markets in short-term trading, demonstrating strength despite widespread uncertainty about the US' standing in the AI industry.

Since reaching a local low of $97,750 on Jan. 27, BTC/USD has climbed over $5,000, diverging sharply from the S&P 500 and Nasdaq 100, which ended the most recent session with losses of 1.5% and 3%, respectively.

Even as concerns surrounding DeepSeek persisted following the launch of its latest AI tool, the Janus-Pro-7B image generator, Bitcoin managed to hold above the six-figure mark.

“The fact that Bitcoin stabilised while the NASDAQ continued to slide is extremely bullish imo,” Dragosch commented, adding:

“Bitcoin also outperformed the NASDAQ over the past 2 trading days. Bitcoin already showing limited downside here.”

The growing disconnect between cryptocurrencies and traditional stocks is also evident in sentiment indicators.

The Fear & Greed Index reflects a prevailing sense of “fear” in stock markets, currently sitting at 39/100.

Meanwhile, its crypto counterpart registers 72/100, nearing the “extreme greed” zone.

Some investors are already increasing their Bitcoin holdings, anticipating a broader return to a bullish trend.

Keith Alan, co-founder of trading resource Material Indicators, confirmed he had re-entered the market during the rebound.

“That wick to $97,750 should not shake your confidence in this Bitcoin bull run, but it should remind you that a deep correction can, and most likely will, develop when the market gets over hyped,” he told his followers on X.

Alan pointed to one of Material Indicators’ proprietary trading tools, which signaled a positive outlook for Bitcoin’s price movement.

“Recovering the 21-Day Moving Average before the D candle close was a positive sign, and the new Trend Precognition signal is an indication that BTC is likely to continue consolidating in this range before the next explosive move develops,” he added.

Renowned trader and analyst Rekt Capital shares this optimism, maintaining that the current bull market still has plenty of room to grow based on historical patterns.

“It is still relatively early on in the BTC Parabolic Phase of this cycle,” he emphasized, adding:

“Historically, this phase has lasted on average ~300 days. Bitcoin is on Day 82 of its Parabolic Phase.”

Sources:

https://cointelegraph.com/news/bitcoin-extremely-bullish-traders-gear-up-next-btc-price-pump

https://x.com/Andre_Dragosch/status/1884128995886915784

https://x.com/KobeissiLetter/status/1883927276800336124

https://feargreedmeter.com/crypto-fear-and-greed-index

https://x.com/KAProductions/status/1884050059773501667

https://x.com/rektcapital/status/1883986756095336825