Bitcoin (BTC) has recently seen a slowdown in price recovery, despite briefly surpassing the $60,000 mark. This lackluster price movement can be attributed to a variety of factors, one of them being the reduced demand for Spot Bitcoin ETFs. These ETFs witnessed a surge in net inflows during their initial three months of launch, contributing to Bitcoin’s impressive rally to an all-time high in March. However, the demand for these funds has dwindled since the beginning of the month. Research from Kaiko indicates a steady decline in net inflows across all ETFs, subsequently affecting Bitcoin’s bullish momentum and causing the cryptocurrency to trade sideways.
Andrey Stoychev, Head of Prime Brokerage at Nexo, previously cautioned that Bitcoin was unlikely to experience significant price surges without a catalyst. He suggested that Bitcoin would likely continue trading around the $67,000 price range, leading to fluctuations between support and resistance levels. The current price performance of Bitcoin hints that the recovery above $60,000 may not signify a bullish reversal, reinforcing Stoychev’s warnings about the cryptocurrency’s price stability.
Crypto analyst Mikybull Crypto forecasted a potential drop in Bitcoin’s price, anticipating a move below $62,580 to clear the CME gap. This gap arises from the weekend closure of CME’s Bitcoin futures market and could signal a resurgence in Bitcoin’s price once cleared. Despite the possibility of Bitcoin continuing to trade sideways, Mikybull Crypto believes that the cryptocurrency has reached its local bottom. To further advance towards $73,000, Bitcoin would need to surpass the $67,000 price level and consolidate its gains.
Considering the impending price surge, accumulating Bitcoin now appears to be a strategic move, as highlighted by crypto analyst Ali Martinez. Martinez pointed towards Bitcoin’s Market Value to Realized Value (MVRV) 90-day ratio, indicating that the cryptocurrency remains in a favorable buying zone. However, at the current juncture, Bitcoin is trading at approximately $63,400, experiencing a slight decline of over 1% in the last 24 hours, based on data from CoinMarketCap.
The recent slowdown in Bitcoin’s price recovery can be primarily attributed to the reduced demand for Spot Bitcoin ETFs, which played a pivotal role in the cryptocurrency’s earlier rally. The warnings and predictions from market analysts and experts signal a period of potential volatility and consolidation for Bitcoin’s price. As investors navigate through these uncertain times, conducting thorough research and analysis before making investment decisions becomes imperative. The cryptocurrency market remains highly volatile, and caution should be exercised when engaging in trading or investment activities.
