Investors are still feeling anxious, and Bitcoin’s price is not showing much enthusiasm to maintain its recent highs. Currently, BTC is being traded at $64,150, while altcoins are generally experiencing losses. Ether, on the other hand, is finding buyers at $3,100. So, what do the current market forecasts suggest?
Latest Cryptocurrency Predictions
The cryptocurrency markets are going through an intriguing phase as recent data from the US raises concerns about stagflation. We discussed the possibility of the economy continuing to contract while inflation remains strong at the beginning of last week. The GDP and data from last week further strengthen this viewpoint. However, the Federal Reserve needs to see more conclusive data indicating a continued decline in inflation before it can consider reducing interest rates.
Market analysis platform DecenTrader mentioned in its recent market assessment that BTC’s recovery was triggered by Bitcoin funding rates shifting towards a more neutral position after turning negative over the past weekend.
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Data from Coinglass confirms this and shows funding rates on exchanges in the neutral zone. When these rates are negative, it is considered a signal of decline. The current situation indicates uncertainty with a neutral funding rate of 0.025 or approximately 0.5% weekly. Although the downward trend appears to be over, if the bulls cannot gather momentum, the situation may reverse.
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Bitcoin Commentary
According to renowned cryptocurrency commentator Ali Martinez, there is a significant demand zone between $57,000 and $64,000, and the price could potentially remain within this range for an extended period. Martinez highlights that the recent price drop has caused the MVRV ratio to fall below the 90-day moving average.
According to IntoTheBlock, whales have been accumulating assets strongly with each market dip. However, each accumulation period has been followed by a subsequent price increase, and the rate of whale accumulation is gradually decreasing. This could be interpreted as large investors becoming less eager to buy at lower levels.
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Disclaimer: The information provided in this article should not be considered investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry a significant level of risk. Therefore, conducting thorough research is essential.
