Cryptocurrency Bitcoin Faces a Turning Point with Long-Term Investors Cashing Out through Bitfinex
Bitcoin (BTC) is teetering on the edge, with the potential for a steep correction or a breakthrough beyond its latest all-time high of approximately $111,980. The cryptocurrency exchange Bitfinex suggests that BTC is waiting for its next macroeconomic trigger while balancing between structural support and dwindling bullish energy.
Last week, BTC encountered an intense correction, driven by a public feud between U.S. President Donald Trump and billionaire entrepreneur Elon Musk. Their dispute triggered high volatility, escalating market uncertainty. On June 5, BTC took a dive to a local low of $100,420, resulting in $900 million in long liquidations across the crypto market. This was the largest single-day liquidation since April, with total long liquidations surging to over $1.9 billion in just eight days, creating an aggressive shakeout that helped deleverage the system.
However, with long-term BTC holders still cashing out their gains, analysts predict that the risk of a short-term correction remains. This risk is magnified by the absence of a strong catalyst to propel BTC beyond its current all-time high.
Bitcoin's Potential Support Zones
Given the stalling bullish momentum, Bitfinex has utilized on-chain pricing models to pinpoint potential support areas in the event of a correction. The $114,800 (upper bound), $97,100 (mean), and $83,200 (lower bound) levels serve as an indicator of short-term sentiment. Analysts believe that if BTC maintains a stable price within this range, it might enter a consolidation phase. Conversely, a breakout could signal the asset's direction.
If BTC manages to breach the $114,800 mark, it's likely that the rally would continue, accelerated by spot demand. On the flip side, if BTC declines below the $97,100 mark, particularly below the $95,600 threshold, it could signify cooling sentiment, potentially leading to a slide down to the $83,000 level.
Meanwhile, on-chain analysis has pointed to the $103,700, $97,000, and $83,000 levels as crucial support zones in the upcoming days. "The price movements at these thresholds in the coming days will offer a high-signal view on whether the rally resumes or we're entering a broader consolidation phase," Bitfinex stated.
Bitcoin Price Predictions
While specific predictions tying to Bitfinex's support zones aren't detailed, the general consensus is that Bitcoin's price could witness substantial appreciation by 2025, contingent on maintaining support levels and favorable market conditions.
Some predictions suggest that Bitcoin could reach between $120,000 to $125,000 by June 2025, influenced by factors like whale accumulation and expanding global liquidity. Support levels are crucial in sustaining upward momentum; if Bitcoin holds above specific support levels, such as $108,000, it could continue to climb.
Technical indicators like bull flags or trends in buying pressure are being monitored to gauge potential breakouts or reversals in Bitcoin's price.
In conclusion, while detailed predictions explicitly connecting Bitfinex's support zones aren't provided, the overall sentiment seems to be that Bitcoin's price could rise significantly by 2025, given the right market conditions and maintenance of support levels.
[1] https://www.nasdaq.com/articles/seeking-alpha/predicting-the-future-price-of-bitcoin-with-on-chain-analytics-2021-06-05[2] https://www.nasdaq.com/articles/mark-wittow/bitcoin-will-still-be-gold-in-2025-but-what-will-be-the-price-2021-05-24
- Despite the recent turbulence in the crypto market due to a public disagreement between Donald Trump and Elon Musk, on-chain analysis suggests that Bitcoin's potential support zones at $103,700, $97,000, and $83,000 could offer insights into its future direction.
- The cryptocurrency exchange Bitfinex, along with several analysts, predicts that Bitcoin could witness substantial appreciation by 2025, contingent on maintaining support levels and favorable market conditions, with some predictions suggesting a price range between $120,000 to $125,000 by June 2025, influenced by factors like whale accumulation and expanding global liquidity.
