Crypto analysts claim that Bitcoin’s almost three-month long rally is losing momentum as the buying pressure weakens, and traders begin to take profits.
“For the first time in that uptrend, momentum has begun to fade,” Bitfinex Analysts said In a Monday market report.
When Bitcoins (BTCSince publication of the article, it is up almost 41% from its previous low of $73,273 for the year. according CoinMarketCap provides data on the market.
‘Vertical acceleration’ sidelined for now
Analysts warned, however, that onchain metrics and order flow data could indicate that Bitcoin is entering a consolidation period or has reached a local peak. “rather than continued vertical acceleration.”
“Spot volume has cooled, taker buy pressure has weakened, and profit-taking has intensified — especially among short-term holders who rode the move from sub-$80,000 levels,” They added.
Analysts insist ETFs should continue despite strong flows
According to analysts, Bitcoin’s next moves will depend on macrofactors as well as institutional demand and ETF inflows.
Since June 9, US-based Bitcoin ETFs reported inflows on 14 trading days in a row, totaling $4.63 billion in net inflows by June 27. according Farside Data.
Timothy Peterson is an economist who described the $2.2 billion of inflows last week as “massive” The streak is expected to continue into this week. “70% chance next week will be positive too, which generally correlates to upward price pressure,” Peterson said.
Bitcoin traders, meanwhile, will be closely following the Federal Reserve’s interest rate decision on July 30. Lower rates have historically been bullish to the cryptocurrency. According to the market, there’s a 19% chance of the Fed lowering rates during this meeting. according CME FedWatch is a tool that allows you to monitor the CME Fed.
Analysts say that despite short-term uncertainties, the overall market structure is still strong. Higher timeframe support levels are still in place. “The current data points to a transition phase,” “They said.”
Bitcoin will keep on rising when long-term buyers stop buying
Some analysts are bullish. Donald Dean, Economist said, “Bitcoin is getting ready to move higher with tight consolidation at the volume shelf.”
Related: Bitcoin price will make history with $109K weekly, monthly close
Charles Edwards, founder of Capriole Investments, recently claimed that institutional moves have not been able to boost the price of Bitcoin despite long-term holding pressure. corporations to buy the asset.
“People are wondering why Bitcoin has been stuck at $100K so long, despite the institutional FOMO,” adding that this is mainly due to Bitcoin OGs — long-term holders — who have been “dumping on Wall Street” The following are some examples of how to get started: “unloading their positions” Since the launch of spot Bitcoin ETFs in January 2024.
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Source: cointelegraph.com
