Analysts Say BTC Needs Fresh Fuel After “Vertical” Phase Ends- Is Bitcoin’s Uptrend Topping Out?
The post Analysts Say BTC Needs Fresh Fuel After “Vertical” Phase Ends- Is Bitcoin’s Uptrend Topping Out? appeared on BitcoinEthereumNews.com. The short-term holders are selling their momentum, and the derivatives data indicates an increase in the bearish sentiment towards Bitcoin. Spot inflows remain robust at $4.63 billion over 14 trading days, but new highs could require a macro or liquidity catalyst. Bitcoin’s rally from April lows seems to have hit a pause as traders start taking profits and market buying momentum fades. Since falling to a low of $73,273 on April 9, Bitcoin has risen by almost 41% to reach as high as $107,380 prior to dropping back a bit. Some analysts argue that the cryptocurrency is experiencing consolidation instead of a new breakout. According to Bitfinex analysts, the spot volume has decreased, and the taker buy pressure has weakened. Short-term holders, especially those acquired below $80,000, have started selling. This is a reversal of sentiment in almost three months of an upward trend. The order flow metrics point to the absence of Bitcoin’s “vertical acceleration.” Rather, structural support continues to be important, and analysts cite the $94,000-$99,000 range as crucial. In case none of those levels breaks, the downside risk remains small. Nonetheless, it is highly plausible that a new all-time high could need a powerful driver like better macroeconomic conditions, continued ETF inflows, or wider global liquidity. Derivatives, Historical Trends Point to Caution The consolidation story is backed by derivative market data. According to Coinglass, on Tuesday, the long-to-short ratio fell to 0.90, its lowest since the beginning of the month. This reading suggests more bearish wagers and diminishing conviction in short-term outperformances. Source: Coinglass Historically, Q3 has been the worst-performing quarter of the year in terms of average returns, only registering 6%. Analysts believe that price action will continue to be range-bound, and the momentum will be during the summer months. According to Bitfinex analysts, the market…
The post Analysts Say BTC Needs Fresh Fuel After “Vertical” Phase Ends- Is Bitcoin’s Uptrend Topping Out? appeared on BitcoinEthereumNews.com.
The short-term holders are selling their momentum, and the derivatives data indicates an increase in the bearish sentiment towards Bitcoin. Spot inflows remain robust at $4.63 billion over 14 trading days, but new highs could require a macro or liquidity catalyst. Bitcoin’s rally from April lows seems to have hit a pause as traders start taking profits and market buying momentum fades. Since falling to a low of $73,273 on April 9, Bitcoin has risen by almost 41% to reach as high as $107,380 prior to dropping back a bit. Some analysts argue that the cryptocurrency is experiencing consolidation instead of a new breakout. According to Bitfinex analysts, the spot volume has decreased, and the taker buy pressure has weakened. Short-term holders, especially those acquired below $80,000, have started selling. This is a reversal of sentiment in almost three months of an upward trend. The order flow metrics point to the absence of Bitcoin’s “vertical acceleration.” Rather, structural support continues to be important, and analysts cite the $94,000-$99,000 range as crucial. In case none of those levels breaks, the downside risk remains small. Nonetheless, it is highly plausible that a new all-time high could need a powerful driver like better macroeconomic conditions, continued ETF inflows, or wider global liquidity. Derivatives, Historical Trends Point to Caution The consolidation story is backed by derivative market data. According to Coinglass, on Tuesday, the long-to-short ratio fell to 0.90, its lowest since the beginning of the month. This reading suggests more bearish wagers and diminishing conviction in short-term outperformances. Source: Coinglass Historically, Q3 has been the worst-performing quarter of the year in terms of average returns, only registering 6%. Analysts believe that price action will continue to be range-bound, and the momentum will be during the summer months. According to Bitfinex analysts, the market…
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