3 Reasons Bitcoin Price Rally Is At Risk – Details
2024年9月29日 - 7:30PM
NEWSBTC
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, a level last reached in late July. However, despite this
price gain which extends Bitcoin’s “unusual” positive performance
in September, certain market conditions indicate concern over the
sustainability of this rally. Related Reading: Bitcoin Set For
Biggest September Gains In A Decade: Here’s Why Why Bitcoin’s Rally
Is In Danger In a Quicktake post on CryptoQuant, an analyst with
username Wenry outlined several reasons Bitcoin may not sustain its
current upward trend. Firstly, Wenry notes that there is 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. Therefore, the analyst postulates that the current price
surge is devoid of new investments and is likely driven by a select
group of market participants. Furthermore, Wenry highlights there
is currently a high level of Open Interest in the BTC market, but
the asset continues to move in a range-bound market i.e.
consolidation due to a low spot volume. The combination of both
factors reflects the absence of a significant buying interest in
Bitcoin despite the present rally. Another point of concern
raised by Wenry states the current Bitcoin price gain is caused by
a rise in derivatives trading due to macroeconomic factors such as
the reduction of interest rates. The crypto analyst pinpoints a
lack of equal support from the spot market therefore, the rally is
likely a “temporal uptick rather than a structural market shift”.
In conclusion, Wenry states that the absence of significant spot
market volume, a stagnant Taker volume, and low retail
participation all threaten the longevity of Bitcoin’s current
rally. Notably, if retail investors remain away from the market,
Bitcoin would likely remain in consolidation or even experience a
price correction. Related Reading: Analyst Backs Bitcoin Hitting
$290,000 In Bull Run – Here’s Why Bitcoin To Break All-Time High In
Q4? On another front, 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, following a similar trajectory with gold.
Van de Poppe’s prediction seems quite plausible as Q4 is
traditionally the most bullish moment for Bitcoin. In addition, the
renowned analyst is also backing altcoins to experience a 3-5x
price surge in the same period. At the time of writing, Bitcoin
continues to trade at $65,810 following a 0.40% gain in the last
day. In tandem, the asset’s daily trading volume is down 53.16% and
valued at $65,649. Featured image from Freepik, chart from
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