Bitcoin is on its way to reclaiming the all-time record of $111 970, but analysts believe there’s not enough fundamental support in the market for it to break through the mark.
“The risk of a short-term correction continues to build — especially in the absence of a strong catalyst to push Bitcoin decisively above the current all-time high,” Bitfinex analyst said A report was published on Monday.
Bitcoiners have a hard decision to make as Bitcoin approaches ATH
“Without a strong macro or structural upside catalyst, Bitcoin is vulnerable to short-term corrections, particularly as long-term holders distribute into strength,” “They said.”
Analysts said Bitcoin (BTCNow, holders of the ) must decide whether or not to sell their shares.
“Market participants still holding coins from Q1 2025, and who held through the sharp drawdown below $80,000, are now being tested as the price churns sideways near ATH levels,” “They said.”
Bitcoin reached a record low in the first quarter 2025 of $78,513. Three months after publication, it is currently trading at $109.519. according CoinMarketCap shows investors who purchase at this low level will see a 39% increase in their investments.
Analysts said that whatever long-term investors decide, they will do. “will help define the next leg of the market structure.” It was warned by the experts that an abrupt sell-off of Bitcoins held for a long time could result in a longer consolidation period.
Bitcoin isn’t the only cryptocurrency to experience a period of consolidation after reaching new record highs. Bitcoin is expected to reach new highs in March 2024. reached an all-time high of $73,679 Before entering a phase of consolidation, the market fluctuated within an area of $20,000 up until Donald Trump’s election as US President in November.
Bitcoin’s return to ATHs could put $1B worth of short positions in danger
Even though Bitcoin is only $2.2% below its previous high price of $111 970, some traders still aren’t convinced. Around $1.08billion worth of short positions will be liquidated by the time it reaches that point. per CoinGlass data.
Analysts pay attention to macro events, such as the US Federal Reserve upcoming rate decision or developments concerning US President Donald Trumps’ tariff policies.
The next Fed announcement is being watched closely by analysts
On June 18, the Federal Reserve will announce its next rate decision. This is a major event for many participants in the market who are looking out for macroeconomic indicators.
Cuts in interest rates are viewed as a positive indicator of risky assets such as Bitcoin and other crypto currencies.
Related: Bitcoin price will see ‘short-term correction’ before $140K: Analysts
Swyftx’s lead analyst Pav Hundal told Cointelegraph recently that those who bet big on Bitcoin are most at risk from the uncertainty of the US president Trump’s tariffs. over the next two months.
“The biggest threat to bulls right now is that nothing changes over the next two months, and we just stay trapped in this cycle of endless tariff ultimatums,” Hundal said.
Magazine: Baby boomers worth $79T are finally getting on board with Bitcoin
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Source: cointelegraph.com
