The cryptocurrency market shows unstable trends under the current economic conditions. Analysis from QCP Capital reports on current prices and forecasts for Bitcoin and Ethereum.
Current State of the Cryptocurrency Market
Bitcoin's price remains in a range between support at $116,000 and resistance around $120,000. A similar situation is observed with Ethereum, which is losing momentum as it approaches the psychological mark of $4,000. However, QCP Capital analysts note that the medium-term probability of reaching new all-time highs is still high due to institutional capital inflows and positive regulatory changes.
Macroeconomic Risks and the Dollar
Analysts associate the main macroeconomic risk with the US dollar. Most traders are betting on its weakening by opening short positions, the number of which has reached extreme values. This situation leaves the market vulnerable to a short squeeze, as if the dollar exchange rate starts to rise, traders may be forced to close unprofitable trades en masse, leading to a move away from risky assets, including cryptocurrencies. Attention will be focused on US inflation and employment data in the coming days.
Bitcoin Forecasts
Glassnode analysts have indicated a possible correction in Bitcoin to the $110,000 level to test key support due to a 'price gap' without significant trading volume at this level. 'The area between $115,000 and $110,000 has no strong support,' the agency reports. It is suggested that the market may test this zone in search of support, creating a 'pull' for the price.
In the current situation, the cryptocurrency market continues to face pressure, with potential correction for Bitcoin. Market participants' attention will be focused on macroeconomic data that could influence price direction.
