Why Bitcoin Struggles for a New ATH and What’s Holding It Back

The analysts indicate that a powerful technical bullish catalyst is essential to propel the cryptocurrency beyond its existing peak.

Short-Term Correction Risk Identified

“Although Bitcoin is rising, the risk of a short-term correction continues to increase,” stated Bitfinex analysts in their report. They emphasized this risk is particularly pronounced “in the absence of a strong catalyst that would propel Bitcoin above its current all-time high.”

The report further elaborates: “Without a strong macro or structural bullish catalyst, Bitcoin is vulnerable to short-term corrections, especially as long-term holders look to strengthen.” This perspective highlights a potential period of consolidation or pullback if significant market-moving news or structural changes don’t emerge.

Critical Support Levels for Bitcoin

Amidst the short-term correction risk, Bitfinex analysts also pinpointed critical support levels for BTC‘s price. These levels represent key zones where Bitcoin could find stability if a downward trend materializes:

$103,700: Identified as the “Spent Supply Allocation – SSD 0.95 quantile first support zone.” $97,100: Designated as the “Short-Term Traders’ (STH) Cost Floor.” $95,600: Noted as the “Spent Supply Allocation – SSD 0.85 quantile first support zone.”

These price points offer insights into potential buying interest or previous accumulation areas that could act as floors during a correction.

Bitcoin at a Crossroads

Bitfinex analysts concluded their report by characterizing Bitcoin’s current position as a “crossroads.” They describe Bitcoin as “balancing between structural support and waning bullish momentum,” actively “awaiting macro signals for the next strong rally.” This suggests that while underlying support exists, a significant external factor or shift in market dynamics will be required to reignite a strong upward trajectory for BTC.

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