Bitcoin (BTC ($84,261.71)) could enter another prolonged consolidation phase following its recent all-time high, mirroring the market behavior in 2024, according to Markus Thielen, research director at 10x Research. Thielen noted that Bitcoin’s current technical chart is exhibiting a “bullish flag” formation, typically seen as a bullish continuation signal.
However, he noted that the structure is showing signs of weakness, suggesting that the market remains in an uncertain state rather than a simple bullish consolidation.
Thielen also noted that the U.S. spot Bitcoin exchange-traded fund (ETF) market has not shown a strong “buy on dips” sentiment. Observing the lack of new capital inflows, Thielen attributed this to the fact that most of the ETF funds originate from arbitrage-focused hedge funds. The persistently low funding rate has further discouraged investors from injecting new capital into the market during the recent price correction.
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As a result, Thielen expressed skepticism that Bitcoin can sustain its upward trend in the short term, adding that there are no signs of a recovery on the horizon.
*This is not investment advice.
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