An analysis of the current situation in the cryptocurrency market indicates a short-term loss of momentum for Bitcoin, according to Bitfinex analysts. Despite price increases, investors are concerned with signals of consolidation.
Decreasing Momentum of Bitcoin
After nearly three months of growth with Bitcoin (BTC) rising over 40% since April, analysts report diminishing buying pressure and increased profit-taking. The current rise, which has reached above $107,000, indicates the onset of a consolidation phase rather than a continuation of rapid growth.
Market Influencing Factors
Bitfinex analysts point to a decline in spot trading volume, which could signal a local top. As momentum wanes, further Bitcoin movements will depend on macroeconomic factors and institutional demand, notably from ETF inflows.
Long-term Prospects of Bitcoin
Despite short-term uncertainty, analysts emphasize that the long-term structure remains strong. "Current data points to a transition phase," they note.
Thus, while short-term prospects for Bitcoin appear uncertain, the resilience of the long-term market structure provides grounds for further analysis and assessment.
