4 Signs That Now Might Be a Good Time to Buy Bitcoin

The price of Bitcoin has dropped to a four-month low recently, prompting investors to wonder if this is a chance to buy or the beginning of a deeper slide.

The price of Bitcoin has dropped to a four-month low recently, prompting investors to wonder if this is a chance to buy or the beginning of a deeper slide.

Bitcoin has fallen recently to a four-month low of $76,700 on March 11 following a steep decline in the stock market. The S&P 500 declined by 6% for the week, reaching a six-month low as investors panicked over a potential global economic slowdown.

In spite of Bitcoin’s 30% correction from its record high price of $109,350, a few vital metrics indicate that the correction process could be nearing an end and recovery could soon set in.

Here are four signs that now might be a good time to buy Bitcoin:

1. Bitcoin’s Decline Doesn’t Equal a Bear Market

Some experts are suggesting that Bitcoin is entering a bear market, but the recent decline is not comparable to the 2021 collapse. At that time, Bitcoin dropped 41% from $69,000 to $40,560 over 60 days.

If the same drop were to occur today, Bitcoin would have to decline to approximately $64,400 by the end of March. However, currently, Bitcoin’s correction is more comparable to the 31.5% drop from $71,940 in June 2024 to $49,220 within 60 days.

2. The U.S. Dollar Is Losing Strength, Which Benefits Bitcoin

Bitcoin often moves in the opposite direction to the U.S. dollar. When Bitcoin entered a bear market in 2021, the U.S. dollar index (DXY) experienced a surge from 92.4 to 96.0. In the present context, the DXY started 2025 at 109.2 but has since decreased to 104.

This decreasing dollar indicates that investors are not rushing to cash, which might help maintain Bitcoin’s price in the short term as it is known to benefit when the DXY faces pressure.

3. Bitcoin’s Derivatives Market Shows Strength

The Bitcoin futures market is still displaying strength and health despite the recent price declines. The annualized premium on Bitcoin futures stands at 4.5%, which is significantly healthier than what was observed during past market crashes.

For instance, in June 2022, when Bitcoin experienced a substantial 44% drop from $31,350 to $17,585, the futures premium fell to 0%. Moreover, traders at the time displayed a high level of fear, pushing the futures to sell-off at an accelerated rate. In contrast, traders are not exhibiting the same degree of panic currently, suggesting that the market is anticipating a rebound.

4. Economic Uncertainty and Real Estate Crisis Could Push Bitcoin Higher

There are fears of a U.S. government shutdown on March 15, which could bring about market volatility. However, if an agreement is reached, it might lead to increased investor confidence in risk assets like Bitcoin.

Meanwhile, there are also signs of a real estate crisis emerging. Home sales hit an all-time low in January, and mortgage delinquencies are surging to levels last seen in 2008. This could drive investors to seek refuge in Bitcoin as a hedge against financial uncertainty.

Despite Bitcoin’s recent drop, several key metrics suggest that the correction process could be nearing an end and a recovery could be setting in. A weaker U.S. dollar, strong derivatives market, and persistent economic uncertainty could support Bitcoin in the coming months, potentially pushing it back toward the $90,000 level.