Bitcoin emerged as an investors’ favorite this past week, recording a price rise of 4.07% according to data from CoinMarketCap. During this price surge, the premier cryptocurrency traded as high as $66,000. However, certain market conditions indicate concern over the sustainability of this rally.
Analyst Wenry notes a lack of interest from retail investors in Korea and the US, as indicated by a stagnant Taker volume. This status is different from previous Bitcoin price rallies where retail activity in these countries was prominent.
Furthermore, there is currently a high level of Open Interest in the BTC market, but the asset continues to move in a range-bound market due to low spot volume. The combination of both factors reflects an absence of significant buying interest.
Another point of concern is that the current Bitcoin price gain is caused by a rise in derivatives trading due to macroeconomic factors like reduced interest rates. The rally is likely a “temporal uptick rather than a structural market shift”.
In conclusion, the absence of significant spot market volume, stagnant Taker volume, and low retail participation all threaten the longevity of Bitcoin’s current rally. Wenry suggests that, if retail investors remain away, Bitcoin may remain in consolidation or experience a price correction.
Popular analyst Michaël van de Poppe has backed Bitcoin to surpass its all-time high price of $73,750 in the last quarter of 2024. He is also supporting altcoins to experience a 3-5x price surge in the same period.
Source: www.newsbtc.com ↗