A recent report from Bitfinex analysts suggests that Bitcoin (BTC) currently lacks the fundamental backing for a sustained push to a new all-time high (ATH).
The analysts indicate that a powerful technical bullish catalyst is essential to propel the cryptocurrency beyond its existing peak.
Short-Term Correction Risk Identified
“Although Bitcoin is rising, the risk of a short-term correction continues to increase,” stated Bitfinex analysts in their report. They emphasized this risk is particularly pronounced “in the absence of a strong catalyst that would propel Bitcoin above its current all-time high.”
The report further elaborates: “Without a strong macro or structural bullish catalyst, Bitcoin is vulnerable to short-term corrections, especially as long-term holders look to strengthen.” This perspective highlights a potential period of consolidation or pullback if significant market-moving news or structural changes don’t emerge.
Critical Support Levels for Bitcoin
Amidst the short-term correction risk, Bitfinex analysts also pinpointed critical support levels for BTC‘s price. These levels represent key zones where Bitcoin could find stability if a downward trend materializes:
- $103,700: Identified as the “Spent Supply Allocation – SSD 0.95 quantile first support zone.”
- $97,100: Designated as the “Short-Term Traders’ (STH) Cost Floor.”
- $95,600: Noted as the “Spent Supply Allocation – SSD 0.85 quantile first support zone.”
These price points offer insights into potential buying interest or previous accumulation areas that could act as floors during a correction.
Bitcoin at a Crossroads
Bitfinex analysts concluded their report by characterizing Bitcoin’s current position as a “crossroads.” They describe Bitcoin as “balancing between structural support and waning bullish momentum,” actively “awaiting macro signals for the next strong rally.” This suggests that while underlying support exists, a significant external factor or shift in market dynamics will be required to reignite a strong upward trajectory for BTC.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/why-bitcoin-struggles-for-a-new-ath-and-whats-holding-it-back/