Bitfinex predicts Bitcoin to hover around $20,000 during the current cycle.
Bitcoin, the popular cryptocurrency, is not expected to drop below the $20,000 mark in the current cycle, according to analysts at Bitfinex. They attribute this prediction to the significant purchasing activity of long-term holders since February 2023, when Bitcoin was trading above $24,000. Currently, Bitcoin is trading around $70,600, with a short-term holder realized price of $55,834, which is seen as a critical support/resistance level in this cycle.
The analysts anticipate that any potential decline to $56,000 would align with the maximum downturn from a new local high to the bottom, representing a decrease of approximately 23-24%. They also highlight 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. However, after considering inflows from other ETFs, the net outflow amounted to $896 million.
Despite this shift to negative ETF flows, the analysts at Bitfinex believe that it is not a cause for significant concern. They attribute the outflows to investors transitioning their funds from GBTC to other ETF providers that offer lower and more attractive management fees. In conclusion, Bitcoin’s future price movement remains promising, with analysts confident that it will continue to perform well in the current cycle.
Read more: Bitcoin surpasses the $70,000 mark and achieves a market cap of $1.38 trillion. Stay updated with the latest news by following us on Google News.
