Bitcoin, in its recovery that began from $62,000 last August, rose as high as over $82,000. However, BTC has been unable to maintain this level and continues to fluctuate between $76,000 and
Bitcoin, in its recovery that began from $62,000 last August, rose as high as over $82,000. However, BTC has been unable to maintain this level and continues to fluctuate between $76,000 and $80,000.
At this point, market analysts see $80,000 as a critical resistance point for BTC, while one analyst stated that it is unlikely for Bitcoin to surpass $80,000 without changes in inflation data or Fed policy.
In his latest report published today, CoinShares Head of Research James Butterfill stated that Bitcoin’s ability to sustain a rise above $80,000 is becoming more difficult due to the Fed’s more hawkish monetary policy and recent negative developments regarding the Clarity Act.
At this point, Butterfill notes that Bitcoin faces two major obstacles in the short term: “A more hawkish Fed and setbacks in the Clarity Act.” The analyst states that these two developments have pushed back the timing of a strong recovery in Bitcoin.
Therefore, CoinShares and Butterfill believe that unless there is a significant improvement in the inflation outlook or a major shift in expectations regarding Fed monetary policy, a definitive breakout above the $80,000 level for Bitcoin is unlikely.
According to Butterfill, the impact of regulatory uncertainty may not be felt equally across all cryptocurrencies. The analyst notes that Bitcoin is relatively more protected due to its clearer current regulatory status, whereas Ethereum and other altcoins are more exposed to negative regulatory developments.
According to on-chain analytics firm Glassnode, Bitcoin may have re-entered an upward trend, surpassing the actual market average, which is the average cost base for actively trading investors.
In its latest analysis on account X, Glassnode stated that the next price level BTC needs to surpass is approximately $80,421, which is the average purchase price of institutional Bitcoin treasury companies.
According to Glassnode, the next key area is around $85,000, which is the cost floor of a US spot Bitcoin ETF. Therefore, in the current structure of BTC, $80,000 and then $85,000 stand out as the main cost floor areas closely monitored by investors.
*This is not investment advice.
Continue Reading: Everything in Bitcoin Depends on This Level: CoinShares and Glassnode Point to the Same Area, Explaining Two Developments That Could Trigger a Rally!
