The value of Bitcoin is currently at $78,593.10 and has only seen a minor increase of less than 0.5% since midnight UTC. However, any significant movement towards $80,000 may be met with 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, thereby limiting any potential price increase.
Furthermore, the upcoming US March PCE inflation report, combined with high oil prices and the recent Federal Reserve decision, may also pose a challenge for the cryptocurrency market. Deans notes that altcoins are closely tied to Bitcoin, with a high correlation and beta percentile, indicating that they may move in tandem with Bitcoin. He also warns that market conditions are ripe for increased volatility, with subdued liquidity and a lack of directional conviction, which may require significant price movements to unlock new liquidity.