News
Bitcoin Should Not Fall Further and May Rebound According to Bitfinex
Tue 09 Jul 2024 ▪ 3 min read ▪ by Luc Jose A.
Bitfinex announces a potential turning point for Bitcoin. According to experts at the crypto exchange, the derivatives market suggests that Bitcoin prices may have reached a local bottom and are showing signs of stabilization. In a context of constant fluctuations and mixed feelings among investors, this news could bring a spark of stability and optimism for the future of the queen of cryptocurrencies.
Market Indicators Reveal Bitcoin Stabilization
Bitfinex analysts have seen encouraging signs that Bitcoin’s price may be stabilizing after a period of intense volatility. After hitting a local low of $53,219 last week on fears of German government sell-offs of Bitcoin and Mt. Gox CreditorsThe queen of cryptocurrencies bounced above the $57,000 mark. This rebound was accompanied by a significant decrease in price fluctuations.
Derivatives Market Data show a narrowing of the spread between implied and historical volatility, by nearly 90%, signaling that traders anticipate a period of more stable prices. Furthermore, the short-term holder spent output profit ratio (SOPR) of 0.97 indicates that these sales are currently loss-making, which could reduce selling pressure and help stabilize prices.
Recently, the German government has transferred a large part of its #Bitcoin holdings on various exchanges, briefly bringing the price below $55,000📉
While many attribute the recent sharp decline in #BTC prices for this action, #Bitfinex Analysts say its impact on the market has been… Italian: https://t.co/zt2pdJZBCK
— Tide Groups (@TideGroups) July 9, 2024
Bitcoin Market Outlook
As Bitcoin shows signs of stabilization, the implications for the market are many. Bitfinex analysts note that despite recent fluctuations, long-term holders continue to profit from their positions, which is a positive indicator for the overall health of the market. Conversely, short-term sell-offs, which appear to be declining, suggest that selling pressure may be easing, providing a more stable environment for prices.
Furthermore, Citi Bank’s forecasts regarding rate cuts by the US Federal Reserve add an extra dimension to this analysis. A series of rate cuts, expected starting in September, could inject a new wave of liquidity into financial markets. This dynamic could translate into a renewed interest in risk assets such as Bitcoin, thus strengthening its position in the market.
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Luke Jose A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I am committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, convey the latest technological innovations and put into perspective the economic and social issues of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.