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The leading cryptocurrency, Bitcoin (BTC), is struggling to break its downtrend due to factors such as ongoing negative macroeconomic events, ETF outflows, and adverse regulatory news from the US.
Bitfinex analysts, evaluating Bitcoin’s current situation, stated that Bitcoin’s attempt at an upward breakout has stalled, noting that the price failed to hold above the $95,000-$98,000 resistance zone and has fallen back below its annual opening level.
Analysts noted in their weekly Bitfinex Alpha report that Bitcoin has fallen more than 10% since reaching a peak of $97,850 in early January, breaking its opening high for the year.
Analysts, noting that the recent decline was influenced by decreased demand in the spot market and increased outflows from ETFs, said that Bitcoin and the current market pricing reflect reactions to temporary risks rather than the beginning of a strong and sustained downtrend.
Despite the pullback, analysts noted that corrections of this magnitude are not unusual. They stated that a recovery in demand in the spot market and ETFs is crucial for an uptrend, and without these catalysts, Bitcoin is likely to trade sideways between $85,000 and $94,500 instead of moving upwards.
“After Bitcoin returned to its established 85,000–94,500 range, stronger spot demand is needed to support a more robust upward breakout.”
At this point, analysts noted that repeated failures near resistance levels have historically prolonged consolidation phases and extended sideways movements rather than rapid upward movements.
*This is not investment advice.
cryptobriefing.com
cointelegraph.com
coindesk.com