Investors are feeling anxious and Bitcoin’s price is not showing enthusiasm to maintain 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 are the current market predictions?
Latest Cryptocurrency Predictions
The cryptocurrency markets are going through an interesting phase as recent US data 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 support this view. However, the Federal Reserve needs to see more compelling evidence that inflation is continuing to decline before it considers cutting interest rates.
Market analysis platform DecenTrader mentioned in its recent market assessment that BTC’s recovery was triggered by Bitcoin funding rates shifting to a more neutral position after reaching negative levels last weekend.
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Data from Coinglass confirms this and shows that funding rates on exchanges are in the neutral zone. A negative funding rate is considered a signal of decline, while the current neutral rate of 0.025 or approximately 0.5% weekly indicates uncertainty. Although the downturn appears to be over, if the bulls fail to gain momentum, the situation might reverse.
Bitcoin Commentary
According to renowned cryptocurrency commentator Ali Martinez, there is a strong demand zone between $57,000 and $64,000, and the price could remain within this range for a significant period of time. Martinez noted that the recent price drop has brought the MVRV ratio below the 90-day moving average.
According to IntoTheBlock, whales have been accumulating Bitcoin strongly with each price dip. However, each accumulation period has been followed by a subsequent price increase, and 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 does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and should conduct their own research.
