Evaluating Bitcoin’s 2025 Market: Why a 2021 Double Top Scenario May Not Materialize
The post Evaluating Bitcoin’s 2025 Market: Why a 2021 Double Top Scenario May Not Materialize appeared on BitcoinEthereumNews.com.
Despite fears of a 2021-style double top, experts argue Bitcoin’s 2025 market differs significantly due to stronger institutional support and positive fundamentals. Key on-chain metrics like rising active wallet addresses and low MVRV Z-Score suggest healthy growth potential, challenging bearish technical signals. Experts cite bullish fundamentals—Bitcoin ETFs, corporate buying, and state treasuries—as signs of a structurally stronger market. As Bitcoin’s price oscillates after surpassing $111,000, expert insights shed light on its potential future, dispelling fears of historical patterns. Why a 2021-style double top scenario is unlikely in 2025 The market has evolved considerably since 2021, adapting to new dynamics. Analysts like Stockmoney Lizards express skepticism regarding the latest RSI-based divergence indicators, arguing they are unreliable predictors of market trends. He cites past instances where similar indicators failed to forewarn traders effectively. Chart comparing Bitcoin’s 2021 and 2025 double top patterns. Source: Stockmoney Lizards on X “Want to know what I found? This thing has been dead wrong most of the time,” Stockmoney Lizards noted, emphasizing the futility of making investment decisions based solely on misleading signals. In contrast, he points to positive on-chain metrics as signs of sustained interest from both retail and institutional investors. For instance, the rising number of active wallet addresses indicates increased participation in the Bitcoin ecosystem. Chart of active Bitcoin wallet addresses. Source: Stockmoney Lizards Another significant indicator is the MVRV Z-Score, which currently signals that Bitcoin is undervalued relative to its historical fair value. This typically suggests potential for healthy price appreciation in the near future. Fundamentals Signaling Market Resilience Analyst Thomas Fahrer, the founder of ApolloSats, argues that a backdrop of strong fundamentals differentiates 2025 from 2021. He notes a wave of positive developments now supporting Bitcoin’s growth, including Bitcoin ETFs, large corporations accumulating Bitcoin reserves, and some US states establishing treasuries that…
Filed under: News - @ June 2, 2025 10:27 am