As a seasoned financial analyst with extensive experience in the cryptocurrency market, I have witnessed numerous price fluctuations and market trends over the years. Based on my analysis of the recent events, I believe that Bitfinex analysts’ warnings to crypto investors regarding bitcoin’s (BTC) recovery should not be taken lightly.
Caution from Bitfinex analysts: Bitcoin‘s (BTC) recent recovery during the weekend does not necessarily mean an end to its correction. Investors should brace for potential further declines in the near future.
In the most recent Bitfinex Alpha analysis, industry professionals considered this week’s market response to be crucial, given the possibility that relieved supply from the weekend might reappear once conventional markets resume operations.
“No Man’s Land”
Beginning on Saturday, bitcoin experienced a nearly 10% increase in value, climbing from $57,600 to $63,000. The week concluded with positive gains for this asset. Bitcoin has moved beyond its 125-day range’s lower boundary of $60,200, which it breached earlier in March following reports of significant bitcoin sales by the German government.
After it was revealed that German government wallets containing Bitcoin were running low on funds, market optimism started to emerge. Nevertheless, this upbeat mood might not last since the Bitcoins held by the Germans, which have yet to be offloaded, remain on trading desks and exchanges.
Bitfinex analysts believe that the selling pressure from German suppliers, currently reflected in bitcoin’s market price, will cease once the relevant trading desks decide on their next moves in the upcoming days.
The market’s ability to swiftly process new information and revise forecasts is highlighted by the change in opinion, yet analysts caution that the market’s response during the initial two days of the week carries significant importance for the following reasons:
Initially, the previous area of weak support at $60,200 has transformed into a potential barrier for price advancement. Additionally, market trends over the last quarter indicate a tendency for positive price movements during weekends, with Saturdays in particular showing reduced selling pressure.
“The analysts stated that we currently find ourselves in a neutral zone, with no definitive answer lying above or below this level until we gain clarity.”
A News-Driven Environment
“The resistance level and three-month trading pattern aren’t the only factors influencing the market right now. The prices of cryptocurrencies are currently being shaped more by news events than by underlying fundamentals.”
Given that Mt Gox creditor distributions are still pending and may influence selling pressure, Bitfinex analysts advise investors to approach their trading strategies with care due to the potential continued impact of related headlines on price fluctuations.
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2024-07-16 09:21