Bitcoin BTC/USD is down 4% ahead of the release of U.S. Consumer Price Index (CPI) data scheduled for April 10, but analysts remain upbeat about its long-term prosepcts.
What Happened: Heavily-followed Bitcoin technical analyst CryptoCon points to the surge in short-term Bitcoin holders as a potential factor for downside price pressure.
The analyst reminded followers of the exceptional gains the crypto market offers, stating, “It’s time to enjoy the best part of the cycle! I do not think crypto has reached the cycle top.”
He also cautioned users about the inevitability of bear markets and drawdowns, serving as a note of caution for investors seeking quick gains.
Also Read: Bitcoin To Face ‘Raging Firesale’ Near Halving, Arthur Hayes Cautions Crypto Traders
Why It Matters: Coinglass data reports $56 million in liquidations over the past 24 hours, with $46 million in long liquidations.
Additionally, data from IntoTheBlock data shows a 6.8% uptick in Bitcoin's daily active addresses, with an 82.3% increase in large transaction volume.
Only 3% of Bitcoin addresses are not in profit, with 87% in profit and the remaining at break-even.
Crypto chart analyst Ali Martinez bases his bullish outlook on support and resistance levels in terms of addresses holding between price ranges, saying “the odds appear to favor the Bitcoin bulls.”
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Top Crypto Analyst Says Bitcoin Could Retest All-Time High, ‘If It Holds Above $69K’
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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