Bitcoin’s rise above $71,000 was merely a reaction to the announcement of a ceasefire between the US and Iran, but the risks of a further decline in the asset remain, analysts at QCP Capital suggested.
Experts believe that short-term volatility in the leading cryptocurrency has decreased, but market participants’ behavior shows that players continue to actively hedge against price declines.
According to QCP Capital, the main drivers of Bitcoin’s future price movement in the near future will remain liquidity in global markets and the behavior of large investors. If they remain cautious, the leading crypto asset could enter a consolidation phase or fall below $68,000.
Profit-taking and high sensitivity to economic signals could put additional pressure on BTC. In particular, any changes in monetary policy in major countries could quickly return to volatility, according to QCP Capital experts.
At the same time, even without a sharp rise, Bitcoin’s price level is forming the basis for a subsequent upward movement. Analysts believe that a breakout of key resistance levels could provide Bitcoin with new momentum. However, in the near term, they consider a conservative scenario, involving consolidation near the $70,000 mark, to be the most likely.
Earlier, Matthew Sigel, head of research at VanEck, stated that it is unlikely that strong catalysts will emerge in the crypto market in the next few months that could change the current dynamics of Bitcoin.
