New Data Suggests Bitcoin is Poised for a Rally Despite Negative Momentum
New insights from the crypto analytics firm Swissblock indicate that Bitcoin (BTC) is on the verge of a significant price surge, even as its momentum appears to be waning. According to Swissblock, the top cryptocurrency just needs a shift in momentum to reverse its current course and potentially trigger a rally that could also benefit altcoins in the market.
Swissblock recently shared on X that Bitcoin is gearing up for a breakout, with profit-taking tapering off and selling pressure being absorbed. The firm suggests that once BTC manages to flip its momentum, it could spark a surge in price, potentially propelling Ethereum and other altcoins to new highs as well.
Although Bitcoin’s momentum stalled recently due to profit-taking by investors, Swissblock remains optimistic about its potential for a breakout. The firm notes that while profit-taking has increased, it is not as intense as in previous periods. This has led to a consolidation phase rather than a capitulation, with selling pressure being moderate.
Swissblock also highlights that a large majority of Bitcoin holders are currently in a profitable position, with 96% of the supply in the green. While this indicates strong holding sentiment, it also presents a temptation for sellers to realize their gains. The firm suggests that until demand returns, each bounce in price could attract more supply, potentially hindering a significant upward move.
Despite the current market conditions, Swissblock emphasizes that Bitcoin’s fundamental technical indicators remain healthy. The Bitcoin Fundamental Index (BFI) is in a neutral zone at 60, network growth is stabilizing, and liquidity is recovering. These factors suggest that Bitcoin could continue trading sideways for some time before making a decisive move to the upside.
At the time of writing, Bitcoin is trading at $114,747, reflecting a 3% decrease on the day. Despite the short-term dip, the overall outlook for Bitcoin remains positive, with the potential for a significant rally in the near future.
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