At $78,218.50, Bitcoin is poised for potential volatility despite its minor gains. The cryptocurrency has seen less than a 0.5% increase since midnight UTC, and any significant push towards $80,000 may face 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 realize profits, thereby limiting any potential advance. The release of the US March PCE inflation report, coupled with high oil prices and the recent Federal Reserve decision, may also exert downward pressure on the market.
Deans notes that altcoins closely follow Bitcoin's movements, with a high correlation and beta percentiles of 97% and 99%, indicating that they may mirror Bitcoin's performance. He also suggests that underlying conditions are ripe for increased volatility, with subdued liquidity and a lack of directional conviction, potentially requiring significant price movements to unlock new liquidity.