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Revealing Report from Bitfinex: “Bitcoin’s Downtrend Might Persist, Here’s Why!”
Disturbing news surfaced from Bitfinex analysts, potentially unsettling investors, suggesting a possible continuation of the Bitcoin decline.
By:
Elif Azra Güven
July 2, 2024 – 5:04 PM
Latest Update:
31 minutes ago
0
Despite Bitcoin (BTC) maintaining a steady range between $62,000 and $63,000 recently, investors anticipating a substantial uptick after enduring prolonged downturns may face disappointment.
A cautionary report from Bitfinex analysts has emerged, casting a shadow over investor optimism.
As per The Block, the analysts highlight a resurgence in profit-taking activities by long-standing Bitcoin holders, signaling a likelihood of profit realization sales.
The analysts underscore that an escalation in profit-taking by these long-term investors could exert notable downward pressure on the Bitcoin value in the immediate future.
“Long-time investors, who paused profit sales since May inception, appear to be resuming asset liquidation.
The recurrent profit-taking among long-haul Bitcoin holders, coupled with the decrease in profit margins on successive sales below the Q2 2024 peak of $69,000, paints a dim near-term prognosis for BTC.
This trend persists despite the current market price lingering below the aforementioned peak.”
The analysts caution that sustained profit-taking by enduring BTC investors might intensify the downward pressure, potentially elongating the ongoing descent and adversely affecting the bullish market trajectory over the medium term.
Twin Backdrops Fortify Bitcoin’s Stance!
While acknowledging the downward strain stemming from long-term investors, the analysts also point out the downward momentum added by the German Government’s BTC offloading and impending sales post Mt. Gox reimbursements.
However, they underscore that counterbalancing these forces, a considerable downturn in miner sales and positive net flows into spot Bitcoin ETFs are bolstering the upward stance of Bitcoin.
In a recent assertion, Bitfinex analysts highlighted a surge in optimism surrounding volatile assets like Bitcoin, attributing it to the unchanged status of the Personal Consumption Expenditure Index (PCE), a crucial inflation metric monitored by the FED for interest rate deliberations throughout May.
*This article does not constitute investment advice.
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