Bitcoin and other major cryptocurrencies are currently trading sideways, leaving the market uncertain about its future direction. Despite this uncertainty, investors remain optimistic, with the fear-and-greed index showing high levels of greed among market participants.
However, analysts at Swissblock are urging caution, pointing to weak bullish momentum and a lack of significant price movement. They suggest that this cautious approach may be influenced by the upcoming FOMC meeting scheduled for next week.
According to Swissblock’s Speedometers, the price momentum for Bitcoin is neutral, with on-chain fundamentals showing bearish signals. The analysts note that BTC is approaching crucial resistance levels at US$70k and US$73k, with a potential breakout above these levels signaling a strong uptrend.
Adrian Zduńczyk, CMT, highlights the growing interest in Bitcoin investments, citing major investment firms’ increasing allocation to Bitcoin-related products. He also points out that mining costs currently exceed the price of Bitcoin, indicating cost pressures on miners in the industry.
RektCapital notes that despite perceptions of a slow-moving bull market for Bitcoin, the actual pace has been faster than historical averages aligned with halving cycles. The analysis suggests that Bitcoin has reached new all-time highs ahead of schedule and has maintained a rapid pace even during consolidation phases.
In summary, while there is optimism in the market, some analysts urge caution due to weak bullish momentum and upcoming events like the FOMC meeting. Investors should keep an eye on key resistance levels for Bitcoin, as a successful breakout could confirm a substantial upward trend in the market.
