Amid a volatile shift in crypto markets, Bitcoin (BTC) appears to be entering a stabilization phase with indicators suggesting traders are entering a period of accumulation.
Analysts saw the front cryptocurrency trading at $66,300, down 0.7%, but maintaining a 7% gain in the last two weeks, despite the price fluctuations, they are noticing very good news.
Ethereum, meanwhile, is down 2% at $2,570, despite a 5.5% gain over the past two weeks, according to the report. Data From CoinGecko.
Market analysts point to several key issues that support this stabilization theory. The $1.7 billion drop in Circle's USDC has been outpaced by major liquidity indicators, including steady coin flows that have totaled $38 billion this year—more than $21 billion in particular. Flowed into Bitcoin Spot ETFs.
According to 10x Research, the market is taking a lot of things before continuing its upward trend. “Rather than being overly pessimistic, we believe the market will need time to digest the higher bond yields before Bitcoin takes off. Continue the upward movement,” 10x Research noted in a note. Decrypt.
They emphasized the amount of money Bitcoin And Ethereum is up 10%, spot prices are late, and retail participation is high. “We'd like to see a number of indicators lined up to confirm bullish speed, but that's not a concern. The market only needs a few days Bring these reasons.”
Adding to this, overall stable coin flow is a key driver of liquidity this year. “With $36 billion in stable coin inflows since the Bitcoin Spot ETF launched, liquidity remains strong,” 10x Research notes.
BRN analyst Valentin Fournier pointed to institutional activity as a key indicator.
“After seven straight days of ETF inflows totaling more than $2 billion, Bitcoin ETF flows have come to a temporary halt,” Fournier explained. “While this may indicate a slight slowdown in institutional demand, we are seeing accumulation at current price levels, suggesting that it may increase as the market strengthens.”
Fournier also noted that if Bitcoin retreats to $67,000 after rejecting the $70,000 resistance level, this soft resistance suggests that traders are stockpiling in preparation for a major breakout. “With the upcoming US presidential election, potential interest rate cuts and global stimulus efforts, cryptocurrencies could push cryptocurrencies to new highs in the coming weeks,” he added.
However, Alex Kuptsykevich, senior market analyst at FxPro, urges caution when bullish on bitcoin. Near the key support level. “Bitcoin is close to the local support level at $66,800. A break below this support could pave the way for a deeper correction to $65,500,” Kuptsykevich said.
Although recently observed, BTC's share of cryptocurrency market capitalization has risen to 57.3% from its April 2021 peak, underscoring Bitcoin's market dominance.
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