Recent data from analytics firm Swissblock indicate that Bitcoin's current stagnation phase may soon conclude, paving the way for a new rally in the cryptocurrency market.
Momentum Regression and Investor Behaviors
Swissblock's analyses shared on social platform X highlight a stalling momentum in Bitcoin potentially linked to increased profit-taking activities. Analysts note that the current selling pressure appears milder compared to intense profit-taking observed around mid-2024, suggesting market participants might be engaging in moderate profit-taking rather than panic selling.
Market Psychology and Technical Outlook
The report states that with 96% of Bitcoin's supply in profit, a dual situation arises where strong investors remain in the market, while unrealized gains may entice smaller investors to sell. 'The trend persists, but momentum regeneration is necessary,' it articulates.
Core Metrics and Expectations
Swissblock's evaluation indicates that Bitcoin fundamentals are strong and stable, with the Bitcoin Fundamental Index (BFI) holding at 60, indicating a neutral stance. Bitcoin was trading at $114,747 at the time of reporting, marking a roughly 3% decline over the past 24 hours.
Swissblock's insights underscore the intricate dynamics at play within the cryptocurrency market, where technical indications and investor behaviors critically influence outcomes.
