Why Are Bitcoin Rises So Short-Lived? Analysts Explain the Reasons and Their Expectations!
The leading cryptocurrency, Bitcoin (BTC), started the new week with an increase. The BTC price rose above $74,000 before giving back some of its gains and falling back to around $73,000.
Although Bitcoin has outperformed stocks or gold since the US-Iran conflict, it remains more than 40% below its peak last October.
Bitcoin is recovering at this point, but is still moving within a certain range. According to analysts, Bitcoin spent much of this year stuck between $60,000 and $75,000. It consistently signaled an upward breakout but was unable to achieve the major breakout.
Speaking to Bloomberg, Wintermute analyst Jasper De Maere stated that despite Bitcoin’s recent uptrends and efforts in that direction, the downward trend still prevails due to increasing open positions and negative funding rates.
The analyst also noted that trading volumes were lower compared to the end of last year, adding that this made Bitcoin vulnerable to price volatility.
Similarly, Andreja Cobeljic, head of derivatives at Swiss-based cryptocurrency bank Amina, noted that the current situation with Bitcoin follows a pattern seen in previous cryptocurrency bear markets.
He predicted that BTC lacked the necessary momentum for further gains and could experience another decline after a temporary relief rally.
*This is not investment advice.
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