Bitcoin remains at lower levels, with consistent closures below $60,000 causing concern. Analysts are examining the potential negative scenarios that technical price weaknesses could trigger. So, what do institutional analysts currently think about the market? What are crypto investors anticipating? Here are the details.
QCP Analysts’ Latest Insights
In light of ongoing sales in Germany and MTGOX activity, investor risk appetite has notably decreased. The RSI easing into the oversold region and sentiment plunging to fear levels have led to new lows in altcoins. What are the latest forecasts from QCP analysts? In a recently released market evaluation, experts stated:
“While stocks and gold have been on the rise since last week, crypto prices are moving in the opposite direction. Last week, around 3-4 PM New York time, there were intense spot sales. This might be the large supply mentioned in recent headlines entering the market, particularly from the German government and Mt. Gox distributions.
However, the price drop coincided with the July 4th US holiday, with prices only finding support the next day when the US market resumed buying. On Friday, there was over $143 million net inflow into BTC spot ETFs. Towards the weekend, BTC traded within a wide range of $53,500-$58,500 amid very weak liquidity. Are these fluctuations a new norm due to weak liquidity outside US working hours, or just a summer market pattern?”
Bitcoin (BTC) Trends
The rise in BTC accelerated to $54,700 at the end of February 2024 after a brief pause, but the price has since moved away from this point. Continued closures below $58,376 suggest the potential for deeper lows. BTC, after lingering at $60,200, is making efforts to stabilize at a lower level.
Key Takeaways for Investors
For investors looking at the current BTC market situation, here are key inferences:
- Monitor price closures below $58,376 as indicators of potential deeper lows.
- Be aware of weak liquidity periods, especially outside US working hours.
- Track large inflows into BTC spot ETFs as potential support signals.
Should the negative sentiment continue, we might witness new lows in the $50,700 and $48,000 range, which would also result in fresh yearly lows for altcoins.