Bitcoin showed signs of exhaustion near the $47,000 range and saw buying pressure begin to ease around that price range. That’s what some experts say about the price of the cryptocurrency, which returned to trade below 45,000 dollars on Thursday, 12, after three days of high.
At the moment, the price of bitcoin remains close to $44,500, shortly after hitting a high of $46,767 in the last 24 hours. According to analysts, the price of bitcoin is likely to face strong resistance around $50,000.
“Derivatives markets are long, perpetual finance rates are positive for sale, indicating positive short-term retail interest,” said Toby Chapple, head of trading at digital asset firm Zerocap.
On the institutional side, things look a little different, according to Chapple, who said that futures calendars, both bitcoin and ether, were “very compressed”, pointing to the growth of open contracts for short positions.
Bitcoin rose 50% in a three-week period, breaking a long-term moving average from strong institutional and retail demands. Still, the cryptocurrency shows signs of exhaustion, as seen by the relative strength index, an indicator used to measure a particular trend.
“Markets need to assimilate some levels of overbought before trying to overcome the $50-55,000 resistance,” said Zerocap’s Chapple.
While the bitcoin rally and the Ethereum network’s “London” update helped push market prices up overall, political tensions in the United States and China’s crackdown remain “significant threats” to the cryptoactives market, said Jehan Chu, a partner at Kenetic Capital, a Hong Kong-based cryptocurrency investment firm.
“With the ‘Saylor Rise’ and ‘Elon Effect’ eroded, bitcoin will likely falter in the $50,000 range before dropping to below 30,000, making room for a new institutional catalyst later in the year to overcome historical highs,” Chu said of medium-term price forecasts, referring to Michael Saylor of MicroStrategy and Elon Musk of Tesla.
In the short term, a pullback is likely, as demonstrated by the number of active bitcoin addresses starting to shrink again, according to data from the Glassnode blockchain analysis tool.
Other cryptocurrencies among the 20 with the largest market capitalization had different reactions to the drop in bitcoin price. Tron and XRP had the biggest gains of the day, while the Internet Computer and Uniswap projects had the biggest falls in the last 24 hours.
Text translated and republished with permission from Coindesk