Bitcoin Price Is Losing Blood: Why Can’t It Rise? Analysts Announced!

Bitcoin price has been keeping investors on their toes lately. Despite the recent gains, Bitcoin, which has fallen below $ 65,000, is at a critical threshold according to analysts. Analyst Miles Deutscher emphasizes that Bitcoin is quickly trading above $64,000 on the weekly chart, indicating a potential danger. During his analysis, Deutsche also mentions that the weakening altcoin market compared to Bitcoin is an important source of concern.

Bitcoin price lost support level

Deutscher notes that Bitcoin has lost the mid-level support at $66,500 and a valuable level of $64,000 is also under threat. According to the analyst, Bitcoin should reclaim $ 66,500 to capture bullish momentum and then target the range peak around $ 73,000. It is said that Bitcoin, which currently seems unstable, could potentially follow a downward trend. The $64,000 level is considered a critical support point, and it is predicted that if this support is broken, the price may decline towards the $60,000 range bottom.

However, there are positive developments as well. The three most valuable altcoins, excluding Bitcoin and Ethereum, are hovering above the key support level of 560. This level is considered a good buying opportunity for many altcoins if it is compatible with individual altcoin charts. Despite the market decline, some altcoins offer buying opportunities in large liquidation situations, especially for long-term investors.

2021 dynamics also affect the current market

Deutscher states that the relative weakness of altcoins compared to Bitcoin extends to market dynamics in 2021. During the bull run in 2021, the cryptocurrency market witnessed a significant influx of capital, as shown by the stablecoin index. This led to high investment activity, particularly from venture capital firms (VC), and money was injected into the market on an unprecedented scale.

Pointing to the next valuable point, the analyst notes that a large number of new tokens will be released to the market in early 2024 as the market begins to show signs of recovery. The oversupply created by the creation of more than 1 million new tokens since April 2024 has negatively affected the market, despite the increased liquidity from Bitcoin ETFs. The increased supply of tokens has diluted the market and negatively affected the performance of altcoins. Since FTX’s collapse, many valuable altcoins have struggled to match Bitcoin’s performance, with only a few exceptions.

Bitcoin analysis came from Cunningham: Why isn’t crypto money rising?

Another name that discusses the reasons why Bitcoin remains horizontal around $ 65,000 is Toby Cunningham, co-host of the Crypto Tips YouTube channel. Cunningham states that this period of “horizontal movement” in which Bitcoin’s price calms down has led to many speculations about the reasons behind it. According to Cunningham, understanding the fundamental factors in this period can give investors clarity and help them make informed decisions.

Cunningham emphasizes that Bitcoin has been in this range for approximately 62 days. The analyst suggests that historical data suggests that this period of calm may extend further before a significant move occurs. While some attribute the current price movement to the German government’s sale of Bitcoin or regulatory investigations into companies such as Jump Trading, Cunningham argues that these factors are not the main determinants.

“Open positions” are effective for Bitcoin price

According to the cryptocurrency analyst, an important element affecting the price of Bitcoin is high open positions. This shows that the use of leverage in the system is significant. Cunningham says leverage has been high over the last four months, affecting the market. In addition, Cunningham often criticizes the FED and its control over the financial system. He emphasizes that the FED, an unelected institution, has significant influence over the money supply and interest rates.

Despite the stagnant market, Cunningham also states that “smart whales” are making valuable moves. He says that recently a whale bought 570 Bitcoins worth more than $430 million, which shows the belief in the long-term value of Bitcoin. This shows that some large investors see this level as an accumulation opportunity, even if the general market sentiment is pessimistic or uncertain.

Referring to Kelly Kellam’s analysis, Cunningham states that Bitcoin has been in this post-halving range for 62 days, with historical ranges ranging from 40 to 150 days. Given the unique nature of this bull market, he predicts that the current calm could extend further. He advises investors to be patient and focus on Bitcoin’s fundamentals without getting carried away by short-term price fluctuations.