The value of Bitcoin, currently at $78,326.47, may see a decline despite its slight increase. The largest cryptocurrency has seen less than a 0.5% gain since midnight UTC, and any significant movement towards $80,000 is 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 may prompt them to sell and take profits if the price surpasses this level. 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 percentiles of 97% and 99%, indicating that tokens may move in tandem with Bitcoin. Furthermore, Deans stated that conditions are forming that are typically associated with increased volatility, and price movements may be necessary to unlock new liquidity.