Analysts from Bitfinex report that traders are hesitant to invest in Bitcoin at its current price as the cryptocurrency struggles to move past its all-time high of $111,970.
“The bulls can’t hesitate or elevate prices significantly without new catalysts or clearer macro signals,” noted a Bitfinex analyst in a market overview on Tuesday. Bitcoin (BTC) is showing signs of weakness as it dips below its recent peak from May 22.
$1.63 Billion in Short Positions at Risk of Liquidation
“This shows a lack of sustained momentum,” the analyst continued. At the time of reporting, Bitcoin was trading at $108,560, experiencing a 2.15% uptick over the last week, as indicated by data from COINMARKETCAP.
The all-time high of $111,970 is about 3.14% above current levels, and moving past that could trigger the liquidation of $1.63 billion in short positions, according to Coinglass data.
Following the rise in geopolitical tensions in the Middle East on June 22, BTC managed to rebound over $100,000 briefly, although it soon lost its upward momentum.
“Delicate Equilibrium” in the Bitcoin Market
Bitfinex analysts characterize the market as being in a “subtle equilibrium.” They observed that while profit-taking pressures have eased, the tepid buying interest suggests traders are still looking for clearer signals.
Bitcoin has remained within a tight trading range of $100,000 to $110,000 since June 23, reflecting a sort of indecision among market participants. “The broader trend appears stagnant,” the analysts remarked. “The lack of clear momentum hints that buyers may be apprehensive,” they noted.
“This mix of waning profit-making pressure and unresolved breakout momentum illustrates a balanced market, likely waiting for a new catalyst to steer its next move,” they added.
Increasing Social Media Sentiment for Bitcoin
In a different perspective, blockchain analytics platform Santiment revealed that Bitcoin’s social media sentiment has surged to its highest level in three weeks, with bullish comments outnumbering bearish ones at a ratio of 1.51 to 1.
However, Santiment analyst Brian Kinlivan cautioned that despite this rising sentiment, Bitcoin’s price may continue to decline, as seen after earlier surges in trader confidence on June 11 and July 7.
Alexis Silkia, a representative from Yellow Chairman, also mentioned that geopolitical tensions and trade disputes seem to be subsiding. “Bitcoin and other cryptocurrencies like Ethereum and XRP are starting to resemble gold as a hedge against economic uncertainty,” he added.
This article does not offer investment advice or endorsements. All trading activities carry risks, and readers are encouraged to conduct their own research before making financial decisions.
