Analysts say that Bitcoin’s rally of nearly three months may be losing its momentum, as purchasing pressure is weakening and more traders are taking profits.
“For the first time in that uptrend, momentum has begun to fade,” Bitfinex analyst said On Monday, the markets were covered in an article.
When Bitcoins (BTCSince publication of the article, the value of the, which fell to a low of $73,273 for this year on April 9 has increased by nearly 41%. 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 warn that ETFs cannot be abandoned despite a strong trend of inflows
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, an economist at the University of California Berkeley, described last week’s inflows of $2.2 billion 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 are also closely watching the Federal Reserve interest rate announcement on July 30, as lower rates tend to be bullish for crypto. According to the market, there’s a 19% chance of the Fed lowering rates at this meeting. according CME FedWatch Tool
Analysts report that, despite the short-term volatility, market structures remain strong and support higher time frames. “The current data points to a transition phase,” They said.
Bitcoin’s upward trend will continue once long-term investors stop selling
Some analysts are bullish. Donald Dean is an 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
