Currently trading at $76,965.13, Bitcoin may be poised for a downturn despite its slight gains. The cryptocurrency has seen less than a 0.5% increase since midnight UTC, and any significant moves towards $80,000 are likely to encounter opposition. According to Luke Deans, a senior research associate at Bitwise, short-term holders have a cost basis around $80,000, which could prompt them to sell and take profits, thereby capping any potential advance. The upcoming US March PCE inflation report, coupled with rising oil prices and the recent Federal Reserve decision to maintain the federal funds rate, may also contribute to market volatility.
Deans notes that altcoins remain closely tied to Bitcoin, with a high correlation and beta percentile, indicating that they may move in tandem with Bitcoin. Furthermore, Deans suggests that beneath the surface, conditions are forming that typically precede increased volatility, characterized by subdued liquidity and a lack of directional conviction, which may necessitate price movements to unlock new liquidity.