Analytics Company Warned About Bitcoin in the Coming Months! “It Wasn’t True!”
Bitcoin (BTC) had a positive performance in April, closing the month with a positive return of 11.8%.
While expectations for May remain positive, analysts at the analytics firm CryptoQuant have warned of a possible correction in Bitcoin.
According to CryptoQuant, the recent rise in Bitcoin was driven by increased demand for futures contracts. This futures-led rally, however, signals a potential correction in BTC lasting several months.
CryptoQuant stated that Bitcoin’s rise in April was driven by futures demand, but was also triggered by a drop in spot demand, warning of a potential decline in the medium term.
Although BTC surged by approximately 20% in April, rising from $66,000 to $79,000, CryptoQuant noted that the discrepancy between the drop in spot demand and the price increase is an on-chain signal indicating a speculative rise rather than a structural one.
At this point, CryptoQuant analysts noted that this market structure resembles the beginning of the 2022 bear market, which led to a prolonged decline.
The analysis firm also noted that the April Bullish Score Index fell from 50 to 40, indicating a decline in market conditions.
In conclusion, CryptoQuant stated that Bitcoin is highly likely to face downward pressure, noting that this pattern is similar to historically prolonged bear market periods.
*This is not investment advice.
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