Bitcoin Dips Below $83,000: The Line in the Sand Bulls Need to Watch
Bitcoin (CRYPTO: BTC) could be entering one of its strongest bull markets, despite its recent pullback, as The DeFi report founder Michael Nadeau sees an 85% probability that the cryptocurrency has entered an early bullish phase. Speaking on the Milk Road Crypto podcast, Nadeau said Bitcoin’s decline towards $81,000 on Thursday was expected after a month of trading between $77,000 and $87,000. He anticipates a retest of the 50-week moving average near $78,000, with $83,000 remaining a key level for bullish confirmation. However, multiple weekly closes below $78,000, coupled with weakening ETF inflows, could invalidate his outlook. Nadeau believes Bitcoin’s 53% correction over nine months flushed out excess leverage, while significant accumulation between $56,000 and $85,000 reduced selling pressure. He considers a drop toward $55,000 unlikely unless unexpected macroeconomic shocks emerge. Bitcoin’s Biggest Bull Market Still Ahead? Nadeau believes crypto could be entering its strongest market setup yet, supported by institutional adoption, declining Bitcoin volatility and growing Wall Street participation. He expects stablecoin adoption to accelerate as the U.S. seeks greater demand
Bitcoin (CRYPTO: BTC) could be entering one of its strongest bull markets, despite its recent pullback, as The DeFi report founder Michael Nadeau sees an 85% probability that the cryptocurrency has entered an early bullish phase. Speaking on the Milk Road Crypto podcast, Nadeau said Bitcoin’s decline towards $81,000 on Thursday was expected after a month of trading between $77,000 and $87,000. He anticipates a retest of the 50-week moving average near $78,000, with $83,000 remaining a key level for bullish confirmation. However, multiple weekly closes below $78,000, coupled with weakening ETF inflows, could invalidate his outlook.
Nadeau believes Bitcoin’s 53% correction over nine months flushed out excess leverage, while significant accumulation between $56,000 and $85,000 reduced selling pressure. He considers a drop toward $55,000 unlikely unless unexpected macroeconomic shocks emerge. Bitcoin’s Biggest Bull Market Still Ahead? Nadeau believes crypto could be entering its strongest market setup yet, supported by institutional adoption, declining Bitcoin volatility and growing Wall Street participation.
S. seeks greater demand for Treasury securities, potentially fueling crypto speculation and a larger bull market. Despite macroeconomic uncertainty, Nadeau remains heavily invested in crypto. He allocated 44% of his bear market investments to Bitcoin, although BTC now accounts for roughly 25% of his portfolio following stronger altcoin gains.
Will Altcoins Outperform BTC? Nadeau noted that almost 96% of the top 50 cryptocurrencies outperformed Bitcoin in September, suggesting renewed investor appetite for riskier digital assets. He characterized the rally as a recovery from deeply oversold conditions rather than a full-fledged altcoin season. fun as key investment themes.
Nadeau believes high-volume DeFi applications could generate stronger revenues and support token buybacks, potentially making them attractive investments. He remains more cautious about Ethereum (CRYPTO: ETH) outperforming Bitcoin, citing uncertainty over how much economic value it captures from activity on Layer-2 networks. Image: Shutterstock Read Also: Tom Lee Predicts 'Largest Crypto Bull Market Ever' but ETH Craters 5%