The international panorama puts limits on a short-term rally for Bitcoin.
The cryptocurrencies They fall on a difficult Tuesday for digital assets. Bitcoin falls 2% to US$62,000 in the last 24 hours, while Ethereum (ETH) seeks to regain US$3,000. The situation is similar for the rest of the altcoins that lose up to 3%. What to expect with the price?
Will Bitcoin rise in the short term?
One can look for a thousand and one reasons to be optimistic about the future, such as close ‘halving’ (halving of block mining rewards on the Bitcoin blockchain) but the reality is undeniable: Cryptocurrencies are suffering more than expected at a time when no one expected them to show these signs of weakness.
“Despite the good news, BTC still faces some clear headwinds today. The flight to safe havens has caused the dollar breaks higher, hence The near-term prospects for a BTC rally appear limited. However, if data and comments from the Federal Reserve (Fed) throughout the week cause a pullback in the USD, this could pave the way for further upward momentum, as long as we do not see any escalation between Israel and Iran,” says James Harte, an analyst at TickMill Group.
Other analysts are more negative. This is the case of Markus Thielen, founder of 10x Research, who believes that risk assets are “on the verge of a significant correction” due to “unexpected and persistent inflation.” According to this analyst, who predicted the 2022 bear market bottom and the recent ‘prehalving’ rally, with the bond market expecting less than three interest rate cuts, Risk assets such as cryptocurrencies or technology stocks may not have as good a year as previously thought.
Analysts are bearish on Bitcoin
“We are bearish. Most of this bitcoin rally in 2023 and 2024 is driven by expectations that interest rates would be cut, and this narrative is now being seriously questioned,” says Thielen, who also highlights that inflows into the exchange traded funds BTC spot ETFs (ETFs) have slowed down. In this sense, Matteo Greco, research analyst at Fineqia, points out that the latest inflows and outflows show “greater caution and profit-taking” on the part of investors, despite the fact that trading volumes remain high.
Per technical, Harte states: “Support at $64,540 holds, but bulls need to see a break of the $69,355 level to refocus on the highs. Above, The most important bullish target is $81,940, and below, $49,425.”
Source: Ambito
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