Is It Time to Buy Bitcoin? 4 Signs That Indicate It's Time to Buy

The price of Bitcoin has recently dropped to its lowest level in four months, leaving investors wondering whether this is a buying opportunity or the beginning of a deeper decline. Bitcoin recently dropped to a four-month low of $76,700 on March 11 after a sharp decline in the stock market. The S&P 500 fell 6% for the week, hitting a six-month low as investors panicked about the possibility of a global economic recession. Despite Bitcoin's 30% correction from its all-time high of $109,350, some key figures indicate that the correction may be nearing its end and the recovery process could soon take place. Here are four signs that now may be a good time to buy Bitcoin:

1. The decline of Bitcoin does not necessarily mean the market price is going down Some experts believe that Bitcoin is in a bear market, but the recent decline is not like the crash in 2021. Back then, Bitcoin dropped 41% from $69,000 to $40,560 in 60 days.

If a similar decline occurs today, Bitcoin will have to drop to around $64,400 by the end of March. Currently, Bitcoin's correction is similar to a 31.5% drop from $71,940 in June 2024 to $49,220 within 60 days. 2. The US dollar is losing its strength, which is beneficial for Bitcoin Bitcoin tends to move in the opposite direction to the US dollar. When Bitcoin entered the market with a price drop in 2021, the US dollar index DXY soared from 92.4 to 96.0. Here, DXY started 2025 at 109.2 but has since dropped to 104. The dollar's depreciation indicates that investors are not fleeing cash, which may help boost Bitcoin prices in the short term. 3. The Bitcoin derivatives market shows strength The Bitcoin futures market remains strong, even with the recent price drop. The annual insurance fee for Bitcoin futures is currently 4.5%, much healthier than previous market crashes. For example, in June 2022, when Bitcoin dropped 44% from $31,350 to $17,585, future insurance premiums dropped to 0%. Currently, traders are not showing similar levels of fear, indicating market expectations of a recovery. The perpetual future funding rate of Bitcoin is almost equal to 0, indicating a balance between sellers and buyers. In a downtrend market, short selling often takes the advantage, making this rate negative. Large market cap companies like Tesla -54%, Palantir -40%, and Nvidia -34% have declined significantly, especially in the AI segment, as concerns about recession increase. 4. Economic instability and real estate crisis may drive Bitcoin prices higher Concerns about the potential shutdown of the US government on March 15 may cause market volatility. If an agreement is reached, Bitcoin and other risky assets could boost investor confidence. Meanwhile, signs of a housing crisis are emerging. Home sales hit an all-time low in January and foreclosure rates have risen above those of 2008. This could drive investors towards Bitcoin as a hedge against financial instability. Despite the Bitcoin decline, key signs indicate that the correction may be coming to an end. The weaker US dollar, strong derivative market, and economic instability could support the recovery, potentially pushing Bitcoin back to $90,000.