Significant developments in the cryptocurrency market have been grabbing headlines lately. Bitcoin is facing potential exhaustion as it reaches the end of the first quarter of 2024 with a 65% price surge. QCP Capital, a trading firm, has warned its Telegram channel subscribers about the exponential rise possibly posing challenges in the next quarter.
What to Anticipate in the Bitcoin Market?
Market observers of Bitcoin are closely watching the weekend as several important candle closures, such as weekly, monthly, and quarterly, are happening simultaneously. Although Bitcoin's price action has been around all-time highs after a strong start to the year, establishing new support remains a challenge. QCP Capital is optimistic about the outlook for the second quarter due to ongoing demand for a spot Bitcoin ETF, the Bitcoin halving event, ETNs on the London Stock Exchange, and potential approval of an Ethereum spot ETF.
Key Points from the Report
Despite the positive developments, concerns are raised about maintaining momentum since the beginning of the year. The significant progress, including the launch of spot Bitcoin exchange-traded funds in the United States in January, could pose challenges for bulls. QCP Capital voiced concerns over signs of exhaustion following an exponential price rally in the first quarter.
The second largest altcoin, Ethereum, is also facing decreasing sentiment and high funding rates on exchanges. Traders are urged to be cautious of the futures market during rallies and prepare for value in substantial downturns.
Recent data from TradingView and CoinGlass show a 65.4% increase in the BTC/USD pair since the beginning of the year, competing closely with the same period in 2023. The BTC/USD pair, closing above $61,000, is on track to record its seventh consecutive green monthly candle, a feat only seen once before in 2012.
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