With Bitcoin‘s price hovering around $65,600, analysts delve into the cryptocurrency‘s future movements. As digital currencies are known to fluctuate, even during robust bull or bear markets, short-term corrections are common. This summary reflects on insights from cryptocurrency analysts who share their outlook on the current and future state of Bitcoin.
Market Response to Economic Indicators
Despite a lackluster opening in the US stock markets and a tepid response to spot Bitcoin ETFs, the sentiment post-Federal Reserve meeting remains cautiously optimistic. Following Jerome Powell’s statements and pending inflation data, there’s potential for detachment from broader macroeconomic pressures, impacting Bitcoin’s trajectory.
Analysts Weigh In on Bitcoin’s Path
Aksel Kibar, a respected voice in the cryptocurrency sphere, believes that the market is entering an ideal phase where consolidation, rather than rapid parabolic increases, is more conducive to long-term health and broader market participation.
Kibar suggests that sideways trading is currently necessary for Bitcoin to eventually breach the significant $69,000 mark, an event that seems to be unfolding, though with some delay.
Strategies for Sustainable Growth
Another noted commentator, Bob Loukas, sees value in deeper pullbacks that set the stage for sustainable new peaks. Loukas contends that a disciplined correction course is vital for a more robust and prolonged bull market.
Loukas outlines two possible scenarios: if Bitcoin moves towards lower levels, the 10-day moving average could be a pivot point for further declines. Conversely, a close above $70,000 may signal the start of a rally.
Tracking Bitcoin’s Network Activity
Data from Decentrader indicates Bitcoin’s Spent Output Profit Ratio (SOPR) went negative for the fifth time this year as of March 20th. This measure reveals the proportion of transactions resulting in losses. A negative SOPR suggests increased selling pressure as more investors transact at a loss.