Leading cryptocurrency Bitcoin (BTC) fell to the $100,000 level just a week ago amid tensions between US President Donald Trump and Tesla CEO Elon Musk.
However, BTC experienced a rapid recovery and rose above $110,000 after the second round of talks between the US and China.
Bitcoin is also close to its previous ATH of around $111,900, and Bitfinex analysts said that the chances of Bitcoin reaching the new ATH are low.
Bitfinex analysts said in a recent report that there is little fundamental support for a new ATH.
Analysts stated that a strong technical bullish catalyst is needed for the new ATH and said:
“Although Bitcoin is rising, the risk of a short-term correction continues to increase.
Especially in the absence of a strong catalyst that would propel Bitcoin above its current all-time high.
Without a strong macro or structural bullish catalyst, Bitcoin is vulnerable to short-term corrections, especially as long-term holders look to strengthen.”
Bitfinex analysts, who think that there is a short-term correction risk for Bitcoin, also drew attention to the critical levels where the BTC price can find support. At this point, analysts determined the main support levels that BTC should follow as follows:
“$103,700 (Spent Supply Allocation – SSD 0.95 quantile first support zone) $97,100 (Short-Term Traders’ (STH) Cost Floor) $95,600 (Spent Supply Allocation – SSD 0.85 quantile first support zone)”
Bitfinex concluded by stating that Bitcoin is currently at a crossroads, balancing between structural support and waning bullish momentum, and awaiting macro signals for the next strong rally.
*This is not investment advice.
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