Bitcoin might enter a new consolidation phase after reaching all-time highs, according to Markus Thielen from 10x Research. He highlights key aspects of the market at present.
Technical Analysis of the Current State
Thielen stated that Bitcoin's current technical chart exhibits a 'bullish flag,' typically seen as a bullish continuation signal. However, he noted the formation is showing signs of weakness, indicating the market remains in an uncertain state.
Pros and Risks of Bitcoin ETF
Thielen noted that the U.S. spot Bitcoin ETF market has not shown a strong 'buy on dips' sentiment. He attributed this to the lack of new capital inflows, as most of the ETF funds originate from arbitrage-focused hedge funds. The low funding rate discourages investors from injecting new capital during the recent price correction.
Forecasting Future Trends
Given the current situation, Thielen expressed skepticism about Bitcoin's ability to sustain its upward trend in the short term. He added that there are no signs of a recovery on the horizon.
The current Bitcoin story illustrates the complex interplay between technical signals and ETF market sentiments. Forecasts remain uncertain, and investors should exercise caution.
