Bitcoin Market Update: Traders Remain Cautious
Traders are showing caution in purchasing Bitcoin at its current price. The cryptocurrency is struggling to interrupt beyond its all-time high of $111,970, as reported by Bitfinex analysts.
Challenges for Bitcoin Bulls
According to Bitfinex analysts, “Bulls are hesitant or unable to push prices significantly higher without fresh catalysts or clearer macro signals.” Bitcoin (BTC) is currently exhibiting weaker strength because it stays below its all-time highs, struggling to surpass the extent it reached on May 22.
$1.63 Billion Shorts at Risk
Analysts noted a “lack of follow-through strength.” As of publication, Bitcoin is trading at $108,560, marking a 2.15% increase over the past seven days, in keeping with CoinMarketCap data.
Bitcoin is trading at $108,550 on the time of publication. Source: CoinMarketCap
Bitcoin’s all-time high of $111,970 is only a 3.14% increase from its current level. Surpassing this price could trigger the liquidation of $1.63 billion briefly positions, in keeping with CoinGlass data.
While BTC quickly rebounded above $100,000 after briefly dipping below that level on account of geopolitical tensions within the Middle East on June 22, the rally has since lost momentum.
Bitcoin Market in a Delicate Equilibrium
Bitfinex analysts described the present market structure as a “delicate equilibrium.”
They observed that profit-taking pressures have eased, but the shortage of shopping for interest indicates traders are waiting for clear directional signals.
Bitcoin has been “locked in a tight consolidation range” between $100,000 and $110,000 since June 23, showing indecision amongst market participants. “The broader trend has stalled,” they said, adding that “the lack of sustained momentum suggests buyers are also hesitant.”
This mixture of waning profit-taking pressure and unresolved breakout momentum reflects a balanced market, awaiting a brand new catalyst to define its next direction.
Bitcoin Social Media Sentiment Soars
Data from blockchain analytics platform Santiment suggests a special story. Santiment data from Tuesday indicates that Bitcoin social media sentiment is the very best in three weeks, with 1.51 bullish comments for each bearish one.
However, Santiment analyst Brian Quinlivan cautioned that while rising sentiment could appear positive, previous spikes in trader optimism led to Bitcoin price drops on each June 11 and July 7.
Yellow chairman Alexis Sirkia told Cointelegraph that easing geopolitical tensions and trade escalations have shifted market sentiment from fear to neutral-bullish. “It also feels like Bitcoin and other cryptos like Ethereum and XRP are joining gold as a hedge against economic uncertainty, which still persists,” Sirkia said.
This article doesn’t contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their very own research when making a call.
Image Credit: cointelegraph.com
