Analysts warn of potential corrections for Bitcoin

Bitcoin’s price surged by 3% in the past 24 hours, reaching a peak of around $64,082. However, the flagship cryptocurrency encountered resistance at this level, coinciding with its 200-day moving average. As a result, Bitcoin retraced approximately 1%, trading at about $63,434 during the mid-London session. The volatility led to over $50 million in liquidations in the leveraged market, with the largest single liquidation on OKX amounting to $5 million.

Technical indicators suggest that Bitcoin might experience further corrections before potentially rallying towards its all-time high. Crypto analyst Ali Martinez noted that the TD Sequential indicator has signalled a sell signal, which may lead to a midterm correction over the weekend. However, he anticipates that if Bitcoin consistently closes above the $64K liquidity level, it could pave the way for a new peak.

In addition, recent data shows that Bitcoin supply on exchanges has dropped significantly, with miners increasing their trading activities. Notably, dormant miners have reactivated their wallets, moving approximately 250 BTC. The growing demand for spot Bitcoin ETFs has contributed to this decline in supply, with net inflows exceeding $700 million over the past two weeks.

As global economic conditions shift, particularly following interest rate changes by the US Federal Reserve, analysts predict a liquidity boost for the crypto market. Bitcoin is expected to follow the bullish trends of precious metals like gold, which recently hit an all-time high, indicating a positive outlook for the crypto market in the upcoming months.