Crypto News

Bitcoin Green Zone Analysis: Brandit Warns of Potential Downside Ahead

Bitcoin has re-entered what prominent crypto analyst Brandit calls the “Green Zone” a historically significant area that often appears near cycle tops. Brandit’s latest analysis suggests that while Bitcoin remains structurally bullish long term, several on chain and market indicators now show rising risk of a short to mid term correction. Bitcoin Green Zone with investor sentiment shifting and momentum cooling Brandit warns that the coming weeks may determine whether Bitcoin continues its run or experiences a notable pullback.

What Is Bitcoin’s “Green Zone”?

The Green Zone refers to a cluster of long term on-chain metrics signaling that Bitcoin may be entering overheated territory. These zones appear when BTC approaches historically stretched valuations based on indicators such as:

  • MVRV ratio
  • Price to dormancy models
  • Long term holder profit levels
  • Key cycle price bands

In previous cycles 2013, 2017 and 2021 Bitcoin’s entry into the Green Zone consistently aligned with periods where upside momentum slowed and corrections became more likely. While not a guaranteed top signal the zone has often marked areas of elevated risk.

Brandit’s Updated Findings for 2025

Brandit reports that Bitcoin has officially re-entered the Green Zone prompting renewed caution. The latest 2025 data shows:

  • Momentum slowdown across major exchanges
  • Spot accumulation weakening, especially from long term holders
  • ETF inflow cooling after months of strong demand
  • RSI entering extended territory signaling potential exhaustion
  • MVRV ratio approaching levels where long-term investors historically take profit

Brandit also notes a subtle but important shift in market behavior: long term holders have begun light distribution suggesting confidence in immediate upside may be fading.

Why Brandit Warns of a Potential Downside

According to Brandit Bitcoin’s current positioning resembles earlier historical moments when the market became overextended. Key risks include:

1. Overheated On Chain Metrics

Indicators that signaled strength during the recent rally are now showing diminishing momentum.

2. Changing Market Sentiment

What was recently a strongly bullish sentiment has shifted to neutral hinting at investor hesitation.

3. Miner Selling Pressure Increases

Bitcoin miners are selling more BTC as hashprice hits multi-month lows creating additional downward pressure.

4. Liquidity Tightening

Order books across Binance, Coinbase and other major exchanges show declining liquidity and an environment where price swings become sharper.

5. Post Election Uncertainty

Following the U.S election cycle and shifting economic outlook uncertainty regarding monetary policy continues to weigh on digital assets.

Is It Time for Saylor’s Crew to Worry?

MicroStrategy and its CEO Michael Saylor have been among Bitcoin’s strongest institutional supporters. Their strategy involves aggressive accumulation and holding BTC as a long term treasury asset.

Brandit’s analysis notes:

  • Short term volatility risk is rising, which could affect highly leveraged corporate buyers.
  • A sharp correction could temporarily push MicroStrategy into a higher risk zone.
  • However, Saylor’s thesis remains long term focused meaning short term fluctuations likely won’t alter their approach.

Brandit frames the concern not as panic but as prudent caution especially for traders or institutions with tight liquidity exposure.

Short Term vs Long Term Outlook

Short Term Outlook

Brandit highlights an increased probability of a pullback with Bitcoin now facing multiple converging resistance points. Price behavior suggests:

  • Difficulty breaking above the upper Green Zone boundary
  • Reduced institutional inflows
  • Growing sell-side pressure

Support zones to watch (updated for late 2025):

  • $87,000 to $89,000 (major support)
  • $82,000 (critical zone)
  • $76,500 (high volume node & strongest support cluster)

Long Term Outlook

Despite the short term caution the long term trajectory remains bullish:

  • Bitcoin ETFs continue to see net positive annual inflows
  • Institutional adoption is expanding
  • Post halving supply constraints remain in effect
  • Global macro trends still favor hard assets

Brandit reinforces that the Green Zone isn’t a sell signal, it’s a reminder that the market may be entering a more volatile phase.

Key Levels to Watch in 2025

The following levels are crucial for Bitcoin’s movement

Resistance:

  • $94,000 upper Green Zone boundary
  • $98,500 cycle extension target

Support:

  • $89,000 immediate test zone
  • $82,000 major cycle support
  • $76,500 long term holder defense line

Once the $82,000 is broken, it would be an indication that the market is moving towards a tighter consolidation and perhaps an indication that the market is about to stagnate before another downward trend.

What Investors Should Consider

Brandit recommends caution rather than fear. Key considerations include:

  • Avoiding over leveraged trades
  • Monitoring blockchain trends weekly
  • Watching ETF inflow/outflow cycles
  • Using volatility as an opportunity rather than a threat
  • Recognizing that market heating does not equal a cycle top

The Green Zone historically invites strategic positioning not panic selling.

Conclusion

Brandit’s latest Bitcoin analysis signals that the market has entered a historically sensitive zone where corrections become more likely. That is why it is a real possibility here but the long-term narrative is bullish.

Investors should remain alert, manage risk and watch critical levels closely as Bitcoin navigates this pivotal phase.

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