Investors remain apprehensive and Bitcoin’s price shows no enthusiasm in maintaining its recent highs. At the time of writing, BTC is being traded at $64,150, and altcoins are generally experiencing losses. Ether, on the other hand, is finding buyers at $3,100. So, what do the current market predictions suggest?
Latest Cryptocurrency Predictions
The cryptocurrency markets are currently experiencing an intriguing period as recent data from the US sparks concerns of stagflation. Last week, we discussed the possibility of the economy continuing to contract while inflation remains strong. GDP and data from the previous week further reinforce this perspective. However, the Federal Reserve requires more convincing evidence that inflation is consistently decreasing before considering a reduction in interest rates.
Yesterday, market analyst platform DecenTrader highlighted in its market assessment that BTC’s recovery was triggered by Bitcoin funding rates shifting to a more neutral stance after experiencing negative values over the weekend.
Latest Technology News Here: Newslinker.co
Data from Coinglass confirms this and reveals that funding rates on exchanges are within the neutral range. When these rates are negative, it is seen as a signal of decline. The current situation, with a neutral funding rate of 0.025 or approximately 0.5% weekly, indicates uncertainty. Although the downward trend appears to be over, a lack of momentum from the bulls could result in a reversal.
Bitcoin Commentary
According to the renowned cryptocurrency commentator Ali Martinez, there is a significant demand zone between $57,000 and $64,000, and the price could remain within this range for an extended period. Martinez points out that the recent price drop has caused the MVRV ratio to fall below the 90-day moving average.
Analysis from IntoTheBlock reveals that whales have been accumulating assets during each dip. However, after each accumulation period, there has been a subsequent price increase, and whale accumulation is gradually decreasing. This could indicate that large investors are becoming less eager to buy at the lower price levels.
Stay updated with our news on Telegram, Facebook, Twitter & Coinmarketcap.
Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
