Bitfinex predicts Bitcoin trading to hover near $20k in current cycle
According to analysts at Bitfinex, Bitcoin (BTC) is unlikely to drop below the $20,000 mark during the current cycle. This is due to a group of long-term holders who have been actively purchasing the cryptocurrency since February 2023, when BTC was trading above $24,000.
Currently trading at around $70,600, Bitcoin’s short-term holder realized price is at $55,834, which plays a crucial role as a dynamic support and resistance level throughout this cycle. Analysts predict that a decline to $56,000 would align with the maximum downturn from a new local high to the bottom, representing a decline of approximately 23-24%.
Bitfinex also highlighted recent data from spot Bitcoin exchange-traded funds (ETFs), which showed net negative flows for the first time last week. Each trading day reported a net negative flow, with total outflows reaching over $2 billion, primarily from the Grayscale Bitcoin ETF. After considering inflows from other ETFs, the net outflow amounted to $896 million.
Despite this shift to negative ETF flows, the analysts believe that it is not a significant cause for concern. They attribute the outflows to investors transferring funds from GBTC to other ETF providers that offer lower and more attractive management fees.
In related news, Bitcoin recently surpassed the $70,000 mark and reached a market cap of $1.38 trillion. To stay updated on the latest news, follow us on Google News.
