Bitcoin is currently trading at $76,583.40, showing a slight increase, but it may soon face a setback. The cryptocurrency has gained less than 0.5% since midnight UTC and is expected to encounter opposition as it approaches $80,000. According to Luke Deans, a senior research associate at Bitwise, short-term holders have a cost basis around $80,000, which may prompt them to sell and take profits, limiting any further price increase.
Additionally, the US March PCE inflation report, high oil prices, and the Federal Reserve's decision to maintain the federal funds rate are all weighing on the market. Deans also noted that altcoins are closely tied to Bitcoin, with a high correlation and beta percentile, indicating that they may move in tandem with Bitcoin. He warned that conditions are forming that could lead to increased volatility, and price movements may be necessary to unlock new liquidity.