The price of Bitcoin (BTC) is $78,212.76, showing a slight increase, but it may be heading for a downturn. Having gained less than 0.5% since midnight UTC, any significant push 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 gains. Additionally, the upcoming US March PCE inflation report, combined with high oil prices and rising bond yields, may further contribute to the selling pressure.
The recent decision by the Federal Reserve to maintain the federal funds rate, along with the significant number of dissenting voices, is also affecting the market. Deans noted that altcoins are closely tied to Bitcoin, with a high correlation and beta percentiles of around 97% and 99%, indicating that they may move in tandem with Bitcoin.
He also stated 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 price movements to unlock new liquidity.