The value of Bitcoin is currently at $78,109.97, showing a slight increase, but it may soon face a challenge. Since midnight UTC, the largest cryptocurrency has seen a gain of less than 0.5%, and any significant move 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 could prompt them to sell and take profits if the price moves above this level, thereby limiting any potential advance. Additionally, the US March PCE inflation report, high oil prices, and the recent Federal Reserve decision to maintain the federal funds rate are all contributing to market uncertainty. Deans also notes that altcoins are closely tied to Bitcoin, with a high correlation and beta percentiles of nearly 97% and 99%, indicating that tokens may behave like leveraged Bitcoin trades.
He warns that beneath the surface, conditions are forming that are typically associated with increased volatility, characterized by subdued liquidity and a lack of directional conviction, which may require significant price movements to unlock new liquidity.