In the dynamic landscape of cryptocurrencies, Bitcoin has recently seen a substantial rise in value, climbing 65% as it nears the end of Q1 2024. However, trading entity QCP Capital suggests that this rapid growth trend might be unsustainable as we enter the next quarter. On March 29, QCP Capital alerted its Telegram followers to be wary of potential issues arising from the surge.
Weekend Watch: Decisive Market Indicators
Market analysts are keenly observing Bitcoin’s performance as key timeframes – weekly, monthly, and quarterly – come to a close over the weekend. The cryptocurrency has had a momentous start to the year but is experiencing challenges in establishing new support levels. QCP Capital remains optimistic for Q2, attributing the continued enthusiasm to several factors, including demand for a Bitcoin ETF, supply shrinkage due to GBTC’s saturation, the impending Bitcoin halving event, the listing of ETNs on the London Stock Exchange, and the potential approval of an Ethereum spot ETF.
Challenges Highlighted by the Experts
Despite the positive outlook, QCP Capital acknowledges the risk of momentum loss caused by the substantial gains Bitcoin has already secured since January 2024, including the introduction of Bitcoin ETFs in the United States. They hint at potential exhaustion in the market due to the first quarter’s exponential rally. Additionally, Ethereum, the second-largest cryptocurrency, is experiencing a drop in sentiment alongside consistently high funding rates on various trading platforms.
QCP Capital expresses caution towards the futures market despite the upward trajectory and prepares strategies to capitalize on significant downturns. Real-time data from TradingView and CoinGlass corroborates that the BTC/USD pairing has enjoyed a 65.4% increase from the year’s start, closely contesting Q1 2023’s performance with only a 6% difference in growth rates.
While the BTC/USD pair closed above $61,000, it’s on the verge of marking its seventh green monthly candle in a row, a phenomenon not witnessed since 2012. Market spectators are keenly watching to see if Bitcoin can maintain its bullish streak or if it succumbs to correction pressures.