Bitcoin, VOC, Voice Of Crypto
Bitcoin has been stuck in a consolidation phase between $55,000 and $75,000 since mid-March, with no clear direction yet.
Mike Novogratz predicts a continued consolidation for a month, followed by a potential upswing in Q2.
Bitcoin ETF inflows are decreasing, suggesting a decline in institutional interest.
Open interest remains high and funding rates are positive, indicating bullish sentiment in the futures market.
Breaking above $67,000 could trigger a surge towards $75,000, but a dip to $57,000 is also possible.
Bitcoin is currently in one of its most uncertain times, considering the consolidation phase that appears to have been dragging on since mid-March.
The cryptocurrency seems to be oscillating between its $73,800 all-time high and the $55,000 zone, dragging lower and lower with every passing week.
However, here are a few insights from analysts, to better understand what might be going on with the flagship cryptocurrency.
According to Mike Novogratz, the CEO of Galaxy Digital, during the company's first-quarter earnings call, Bitcoin’s consolidation might be between the $55,000 and $75,000 zone and is expected to continue over the next month.
Novogratz went further to mention that the cryptocurrency might enter an upward bounce as the second quarter of the year (April to June) draws to a close.
Novogratz also emphasized that the crypto market and its major players like Bitcoin, Ethereum, and Solana, are in periods of consolidation and stabilization.
These cryptocurrencies just might be awaiting the next catalyst to drive them upwards in the next bullish wave.
Farside data shows that the initial wave of investor interest in the spot Bitcoin ETFs has been cooling steadily.
So far, we have been seeing more outflows than usual, considering how these ETFs initially saw an impressive $13.9 billion in volume in the first week.
This time around these ETFs hold a still-strong but lower volume of around $11.8 billion overall, suggesting a cooling of institutional interest.
Despite Bitcoin dropping by more than 3% on 14 May, and retesting the $61,000 zone, after initially showing signs of a rebound, the outlook from Futures market indicators remains optimistic.
For example, the open interest in the cryptocurrency has declined from the mid-March peak. However, it still remains about 70% higher than February 2024 levels as shown by Coinglass data:
Bitcoin futures open interest
The weighted funding rate on the cryptocurrency has also remained green for about three weeks now, currently sitting at 0.018%, after recovering from a low of -0.0074 only a few weeks ago on 2 May.
Recent insights from analyst, Cryptotoad show that the range low support around $60,000 is holding on longer than usual, indicating that the bulls might still be able to make a comeback.
However, to do this, we still need to see the cryptocurrency break and close decisively above the $67,000 zone.
Bitcoin updates
While there is still a possibility of a comeback, it is important to approach with caution, because the threat of a dip to 57,000 still looms
Overall, if we do see this break and close above $67,000, we should see the cryptocurrency travel further upwards and hit the range high around $75,000.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.