Bitcoin's recent rally, which has lasted nearly three months, may be losing steam. Analysts are pointing out weakened buying pressure and increased profit-taking among traders.
Bitcoin's Momentum Weakens
Bitfinex analysts stated, 'For the first time in that uptrend, momentum has begun to fade.' Since Bitcoin fell to its year-to-date low of $73,273 on April 9, it has surged almost 41%, reaching $107,380 at the time of publication.
Reliance on Institutional Inflows
Experts emphasize that Bitcoin's next move will depend on macroeconomic factors and ongoing institutional demand, particularly from Bitcoin ETFs. US-based spot Bitcoin ETFs have posted inflows for 14 consecutive trading days, totaling $4.63 billion net inflows.
Outlook for Bitcoin's Further Growth
Some analysts remain optimistic, noting that Bitcoin is poised for higher movement once long-term holders stop selling. An economist remarked that 'Bitcoin is getting ready to move higher with tight consolidation at the volume shelf.'
While Bitcoin's short-term outlook remains uncertain, analysts indicate that the broader market structure remains strong, which could lead to further growth.
