Matrixport says Bitcoin’s on-chain health is improving after fourth-quarter stress, with downside risks fading, but limited new capital argues for selective exposure to low debt.
Summary
- Matrixport notes that Bitcoin selling pressure and liquidity stress will ease in Q4 2024, with structural support and downside risks appearing more limited.
- Valuation and positioning indicators have stabilized, but breakout potential is still limited by a lack of strong spot inflows and long-term shareholder urgency.
- The firm recommends a measured, selective strategy over aggressive risk-taking, keeping leverage tight as BTC emerges from its fragile phase.
Cryptocurrency analytics firm Matrixport said Bitcoin’s (BTC) on-chain structure is starting to recover after the stress observed in the fourth quarter of 2024, according to the company’s latest market analysis.
Matrixport provides Bitcoin prospects
The market outlook appears more constructive if prices remain above critical structural support levels, the company said. Matrixport reported that several valuation and positioning indicators have stabilized, suggesting that downside risks have diminished and the market is emerging from a fragile period rather than entering another sharp decline.
According to the analysis, significant obstacles to recovery remain. Limited inflows of new capital and a lack of apparent urgency among long-term investors are limiting upside momentum, Matrixport said.
Strong breakouts are unlikely to be sustainable without the influx of new money into the market, the company said.
Current conditions favor a measured and selective approach rather than aggressive positioning, Matrixport noted in its overall assessment.
